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Taxis Industries Is Considering a Project That Would Involve the Purchase

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taxis Industries is considering a project that would involve the purchase and refitting of a new manufacturing facility.The following information is known about this project: taxis Industries is considering a project that would involve the purchase and refitting of a new manufacturing facility.The following information is known about this project:   The initial cost of the purchase and refit of the facility is $300,000,000.There is expected to be no salvage value. The facility can be depreciated using straight- line depreciation over a four- year life The current tax rate is 36% A)What is the average accounting rate of return on the project? B)Based upon this result should Tavis Industries accept this project? The initial cost of the purchase and refit of the facility is $300,000,000.There is expected to be no salvage value.
The facility can be depreciated using straight- line depreciation over a four- year life The current tax rate is 36%
A)What is the average accounting rate of return on the project?
B)Based upon this result should Tavis Industries accept this project?


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