Accounting rate of return monson company invested 15000000


Question: Accounting Rate of Return Monson Company invested $15,000,000 in a new product line. The life cycle of the product is projected to be seven years with the following net income stream: $300,000, $900,000, $1,000,000, $1,800,000, $2,400,000, $3,800,000, and $2,400,000.

Required: Calculate the ARR.

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