A- Martin is analyzing a project and has
gathered the following data. Based on this data,
what is the average accounting rate of return? The firm depreciates
it assets using
straight-line depreciation to a zero book value over the life of
the asset.
Year
Cash
Flow
Net Income
0
-$642,000
n/a
1
$170,000
$ 9,500
2
$240,000
$79,500
3
$205,000
$44,500
4 ...