What is the accounting rate of return for project c

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A company is evaluating three possible investments. Each uses straight-line method of depreciation. Following information is provided by the company.

Project A Project B Project C
Investment 200,000 $50,000 $200,000
Salvage value 0 5,000 50,000
Net cash flows:
Year 1 50,000 25,000 80,000
Year 2 50,000 16,000 50,000
Year 3 50,000 12,000 60,000
Year 4 50,000 9,000 20,000
Year 5 50,000 0 0

What is the accounting rate of return for Project C?

Reference no: EM131787106

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