Calculate the accounting rate of return - arr gross

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Example:

Outlay = 100000

Annual Cash Flow = 80000 per year over four years

Life = 4 years

Rate = 0.13, as a decimal

Assume no taxes. Your answer must be accurate to the nearest percentage. Enter your answer as a percentage. Enter the % symbol e.g. 17% Note: do not leave a space before the percentage (%) symbol. Use straight line depreciation over the life of the project.

Answer is 55%

The example is the similar question with the below question which I required to help me, please help me to figure out the answer, thank you.

Given the following information calculate the Accounting Rate of Return (ARR gross).

Outlay = 200000

Annual Cash Flow = 60000 per year over four years

Life = 4 years

Rate = 0.11, as a decimal

Assume no taxes. Your answer must be accurate to the nearest percentage. Enter your answer as a percentage. Enter the % symbol e.g. 17% Note: do not leave a space before the percentage (%) symbol. Use straight line depreciation over the life of the project.

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The Current Assignment Contains One question which is a simple Accounting Question where we need to find out the accounting return from the point of view of investor by investing funds. The solution has been done in MS word file and it has also been explained clearly.

Reference no: EM131018164

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