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ACCOUNTING QUESTION HELP!

Smith & Cramer, Computer Repair, is considering an investment in computer and network equipment costing
$253,000. This equipment would allow them to offer new programming services to clients. The equipment will be depreciated on the straight−line basis over an eight−year period with an estimated residual value of $50,000. Using the accounting rate of return model, what is the minimum average annual operating income that must be generated from this investment in order to achieve an
11% accounting rate of return?

ANSWER CHOICES:
a. $27,830
b. $5,500
c. $33,330
d. $22,330

No answers ... yet!