An Initial Investment of $180,000 Is Expected to Generate $90,000

question 114

Multiple Choice

An initial investment of $180,000 is expected to generate $90,000 in annual cost savings over the asset's expected 3-year life.Assume straight-line depreciation and ignore income taxes.The accounting rate of return based on initial investment is _____.

• A)41.67%
• B)8.33%
• C)16.67%
• D)none of these answers is correct

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