Assume you are given the following information regarding a point of sale computer terminal: the net...
Homework Answers
The accounting rate of return on the terminal value is calculated below:
Given That:
Annual saving (Income) = $1,400
Average Investment Cost = $5,620
Accounting rate of return(ARR) = Average Annual Income/Average Invetsment Cost*100
= $1,400/$5,620*100
= 24.91%
Accounting rate of return(ARR) on the terminal = 24.91%
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