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De La Salle Lipa - CITE IE Computing Accounting Rate of Return An investment requires an initial outlay of P100,000 and has a 5-year life with no salvage value

Accounting

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De La Salle Lipa - CITE IE

Computing Accounting Rate of Return

An investment requires an initial outlay of P100,000 and has a 5-year life with no salvage value. The yearly cash flows are P50,000, P50,000, P60,000, P50,000, and P70,000.

Required:

1.Calculate the annual net income for each of the 5 years.

 2.Calculate the accounting rate of return.