A mini-mart needs a new freezer and the initial investment will cost $350,000. Incremental revenues, including cost savings, are $212,500, and incremental expenses, including depreciation, are $125,000. There is no salvage value. What is the accounting rate of return (ARR)? fill in the blank %

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 7EA: A mini-mart needs a new freezer and the initial Investment will cost $300,000. Incremental revenues,...
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A mini-mart needs a new freezer and the initial investment will cost $350,000. Incremental revenues, including cost savings, are $212,500, and incremental expenses, including depreciation, are $125,000. There is no salvage value. What is the accounting rate of return (ARR)?

fill in the blank %

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