Accounting rate of return on original investment

Reference no: EM13149234

Data on the equipment are as follows: Original investment $45,000,Net annual cash inflow $18,000, Expected economic life 5 years and Salvage value at the end of five years. The company uses the straight-line method of depreciation with no mid-year convention. What is the accounting rate of return on original investment rounded to the nearest percent, assuming no taxes are paid.

Reference no: EM13149234

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