What is the accounting simple rate of ret urn

Reference no: EM13901198

The John-in-the-Box Store is a fast-food restaura nt chain. Potential franchisees following revenue and cost information:

Building and equipment	$490,000
Annual revenue	520,000
Annual cash operating costs	380,000

The building and equipment have a useful life of 20 years. The straight-line depreciation is used. Ignore income taxes.

(a) What is t he pay back period?

(b) What is the accounting (simple) rate of ret urn?

Reference no: EM13901198

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