What is the accounting rate of return on the investment

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Question - Hospitality Management Accounting - A manager is considering investing in specialized equipment costing $240,000. The equipment has a useful life of 5 years and a residual value of $20,000. Depreciation is calculated using the straight-line method. The expected net ca inflows from the investment are: Year 1: $60,000 Year 2: $90,000 Year 3: $110,000 Year 4: $40,000 Year 5: $45,000. What is the accounting rate of return on the investment?

Reference no: EM133110544

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