Henkle Company Is Considering a Project with an Initial Investment

question 150

Multiple Choice

Henkle Company is considering a project with an initial investment of $626,500 in new equipment that will yield annual net cash flows of $90,000 and will be depreciated at $55,000 per year over its nine-year life.What is the accounting rate of return?

• A)5.59%
• B)18.74%
• C)31.27%
• D)50.0%

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