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Calculate the accounting rate of return

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Reference no: EM131627577

Given the following information calculate the Accounting Rate of Return (ARR gross).

Outlay = 100000

Annual Cash Flow = 70000 per year over four years

Life = 4 years

Rate = 0.12, as a decimal

Assume no taxes. Your answer must be accurate to the nearest percentage. Enter your answer as a percentage. Enter the % symbol e.g. 17% Note: do not leave a space before the percentage (%) symbol. Use straight line depreciation over the life of the project.

Reference no: EM131627577

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