What is the average accounting return

Assignment Help Financial Management

Reference no: EM132069915

You're trying to determine whether or not you should expand your business at a fixed asset cost of $4.3 million. The firm uses straight-line depreciation to zero over the project life. The average book value is 2.15 million.

The projected annual net income is $595,000, $502,000, $486,000, and $324,000 over these four years. What is the average accounting return?

Reference no: EM132069915

Questions Cloud

How large will the last deposit be : Your last deposit will be less than $1,050 if less is needed to round out to $10,000. How many years will it take you to reach your $10,000 goal?

What are the external forces of mcdonalds : Q) What are the external forces of McDonalds? Consider how the external forces are affecting profitability using PESTEL analysis?

How the environment shapes personality : The event's severity rating multiplied by the frequency of its occurrence" is an definition of the stressfulness of a life event

How much in a comparative negligence state : How much money will Candy recover in a contributory negligence state? How much in a comparative negligence state?

What is the average accounting return : The projected annual net income is $595,000, $502,000, $486,000, and $324,000 over these four years. What is the average accounting return?

Major steps in the traditional revenue cycle : Provide a diagram, or list the major steps in the traditional revenue cycle.

Develop fun and distinctive products : Wild Planet's success is largely due to the creativity of the design team, who work collaboratively to develop fun and distinctive products.

Integrate classical networks with networked instruments : The Internet of Things (IoT) and its relevant technologies can seamlessly integrate classical networks with networked instruments and devices

Working for a start-up company : Suppose you are working for a start-up company that is designing a very new and innovative product.

User Account

All Pages