Accounting Rate of Return (ARR): Galaxy Co

question 45

Multiple Choice

Accounting rate of return (ARR) : Galaxy Co. has forecasted that over the next four years the average annual after-tax income will be $45,731. The average book value of the manufacturing equipment that is used is $167,095. What is the accounting rate of return?

• A) 33.3%
• B) 27.4%
• C) 29.8%
• D) 22.3%

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