What is the project accounting rate of return

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Reference no: EM131318780

Capitol Corp. management is expecting a project to generate after-tax income of $55,970 in each of the next three years. The average book value of the project’s equipment over that period will be $231,300. If the firm’s investment decision on any project is based on an ARR of 37.5 percent. (Round answer to 1 decimal places, e.g. 5.2%.)

What is the project’s accounting rate of return?

Accounting rate of return is %

Should the firm accept this project?

The firm should rejectaccep the project.

Reference no: EM131318780

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