86%). Sun Dec 10 6: LUS re https://edugen.wileyplus.com/edugen/student/mainfr.un

Question

86%). Sun Dec 10 6: LUS re https://edugen.wileyplus.com/edugen/student/mainfr.uni US Kimmel, Accounting, 6e (ACC 110/2 ignment revenues of $70,360, with annual expenses (including depreciation) of $41,400. At the end of 15 years the salon will have a salvage value of $76,000. Calculate the annual rate of return on the project. (Round answer to 0 decimal places,e.g. 125.) Annual rate of return Open Show Work Click if you would like to Show Work for this question: LAR EXE LINK SAVE FOR LATER Question Attempts: 0 of 5 used

Explanation / Answer

Calculate annual rate of return :

Average investment = (286000+76000/2) = 181000

Net income = (70360-41400) = 28960

Annual rate of return = Net income*100/average investment

= 28960*100/181000

Annual rate of return = 16%

Related Questions

Navigate

• Browse (All)
• Browse 8
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.