What are the accounting rate of return on investment

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Question - Given this information below for 2 different companies in columns L and R, what are the formulae and final answers for the following: Accounting rate of return on investment, Payback, Net present value, and Internal rate of return.

Initial cash outlay

$4,500,000

$2,500,000

Useful life

20 years

20 years

Net cash inflows excluding depreciation

$965,000

$790,000

The cost of capital

9%

9%

Tax rate

40%

40%

Reference no: EM133071582

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