A mini-mart needs a new freezer and the initial investment will cost $240,000. Incremental revenues, including cost savings, are $184,200, and incremental expenses, including depreciation, are $129,000. There is no salvage value. What is the accounting rate of return (ARR)? %

A mini-mart needs a new freezer and the initial investment will cost $240,000. Incremental revenues, including cost savings, are $184,200, and incremental expenses, including depreciation, are $129,000. There is no salvage value. What is the accounting rate of return (ARR)? %

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

A mini-mart needs a new freezer and the initial investment
will cost $240,000. Incremental revenues, including cost
savings, are $184,200, and incremental expenses,
including depreciation, are $129,000. There is no salvage
value. What is the accounting rate of return (ARR)?
%

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