Calculate the accounting rate of return for proposal

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Reference no: EM132502066

Tiberius Manufacturing is considering two alternative investment proposals with the following data:

Question 1: Calculate the accounting rate of return for Proposal Y. (Round any intermediate calculations and your final answer to two decimal places.)

A. 13.87%

B. 12.63%

C. 4.29%

D. 9.52%

proposal Y

Investment 500,000

Useful Life 5 Yrs

Estimated net cash inflows for 5 years - 105,000

Residual Value- 32,000

Depreciation method- straight line

required rate of return- 12%

Reference no: EM132502066

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