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accounting

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solution


Question

Equipment is purchased at a cost of $39,000. As a result, annual cash revenues will increase by $20,000, annual cash operating expenses will increase by $7,000, straight-line depreciation is used, the asset has a ten-year life, the salvage value is $3,000. Assuming a tax bracket of 34%, determine the accounting rate of return? (round to the nearest %)

 

Paper#75542 | Written in 18-Jul-2015

Price : $22
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