Managerial Accounting
Managerial Accounting
16th Edition
ISBN: 9781259995484
Author: Ray Garrison
Publisher: MCGRAW-HILL HIGHER EDUCATION
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Chapter 13, Problem 8F15
To determine

Simple rate of return:

It refers to the rate by which the companies’ estimates that how much an organisation can expect to make off of a capital investment each year. By computing this, the company can quickly recognize that the plan is worth its time and money or not. It is computed by the following formula:

  Simple rate of return=Average Accounting ProfitsAverage Investment

Project’s simple rate of return of each five years.

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Managerial Accounting

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