What is the average accounting rate of return

Reference no: EM13271142

Concept Rowers is buying some new equipment at a cost of $218,900. This equipment will be depreciated on a straight-line basis to a zero book value its 8-year life. The equipment is expected to generate net income of $36,000 a year for the first four years and $22,000 a year for the last four years. What is the average accounting rate of return?

Reference no: EM13271142

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