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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
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.
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