Win Corporation is considering the purchase of wood cutting equipment. Data on the equipment are as follows: Original investment Net annual cash inflow Expected economic life in years Salvage value at...


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Win Corporation is considering the purchase of wood cutting equipment. Data on the equipment<br>are as follows:<br>Original investment<br>Net annual cash inflow<br>Expected economic life in years<br>Salvage value at the end of five years<br>P30,000<br>P12,600<br>5<br>P3,000<br>The company uses the straight-line method of depreciation. What is the accounting rate of return<br>on original investment rounded off to the nearest percent, assuming no taxes are paid?<br>O 42.0%<br>O 20.0%<br>O 24.0%<br>O 22.0%<br>

Extracted text: Win Corporation is considering the purchase of wood cutting equipment. Data on the equipment are as follows: Original investment Net annual cash inflow Expected economic life in years Salvage value at the end of five years P30,000 P12,600 5 P3,000 The company uses the straight-line method of depreciation. What is the accounting rate of return on original investment rounded off to the nearest percent, assuming no taxes are paid? O 42.0% O 20.0% O 24.0% O 22.0%

Jun 02, 2022
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