Example:
Outlay = 100000
Annual Cash Flow = 80000 per year over four years
Life = 4 years
Rate = 0.13, as a decimal
Assume no taxes. Your answer must be accurate to the nearest percentage. Enter your answer as a percentage. Enter the % symbol e.g. 17% Note: do not leave a space before the percentage (%) symbol. Use straight line depreciation over the life of the project.
Answer is 55%
The example is the similar question with the below question which I required to help me, please help me to figure out the answer, thank you.
Given the following information calculate the Accounting Rate of Return (ARR gross).
Outlay = 200000
Annual Cash Flow = 60000 per year over four years
Life = 4 years
Rate = 0.11, as a decimal
Assume no taxes. Your answer must be accurate to the nearest percentage. Enter your answer as a percentage. Enter the % symbol e.g. 17% Note: do not leave a space before the percentage (%) symbol. Use straight line depreciation over the life of the project.