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What is the accounting rate of return for manhattan store

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Question - Judy Blue, CEO of the clothing store All Blue, is planning to open a new store in Manhattan. She plans to purchase a small storefront for $5,250,000 which has a remaining useful life of 15 years. She plans to hire 2 part-time sales clerks and will pay each of them $34,000 per year in wages and other benefits. Judy expects that revenues will average $86,000 per month and other monthly operating costs will run $13,200. What is the accounting rate of return for the Manhattan store?

Reference no: EM132085416

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