What is the accounting rate of return for this investment


A project which requires an investment of $150,000 is expected to generate $65,000 of net income in Year 1, $45,000 of net income in Year 2, and $35,000 of net income in Year 3. Operating cash flows expected in Year 1 are $115,000, with Year 2 as $95,000, and year 3 as $85,000. What is the accounting rate of return for this investment?

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Accounting Basics: What is the accounting rate of return for this investment
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