Accounting Rate of Return (ARR): LaGrange Corp

question 65

Multiple Choice

Accounting rate of return (ARR) : LaGrange Corp. 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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Definitions:

Sugar

A sweet-tasting, soluble carbohydrate used commonly as a sweetener in food and drinks.

Tariff

Tax on an imported good.

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The exchange of goods, services, and capital across international borders or territories, influencing global economic activity.

Sugar

A sweet-tasting crystalline substance obtained from various plants, primarily sugar cane and sugar beet, used as a sweetener in food and drink.