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1 value: 0.25 points What is the accounting rate of return for a project that is estimated to yield total income of $390,000

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Answer #1

Accounting rate of return = Average Accounting Profit / Initial Investment

Average Accounting Profit = $390,000/3 years = $130,000

Accounting rate of return = $130,000 / $920,000 = 0.1413 or 14.13%

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1 value: 0.25 points What is the accounting rate of return for a project that is estimated to yield total income of $39...
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