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Accounting Rate of Return

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LaGrange Corp. has forecasted that over the next four years the average annual after-tax income will be $45,731. The average book value of the manufacturing equipment that is used is $167,095. What is the accounting rate of return?

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Solution Summary

The solution gives detailed steps on calculating the accounting rate of return if the after-tax income and value of equipment are given. All the formula and calculations are shown and explained.

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