2 10 points & 01:46:23 eBook Hint Bartlett Car Wash Company is considering the purchase of a new facility. It would allow Bartlett to increase its net income by $91,438 per year. Other information about this proposed project follows: Initial investment Useful life Salvage value $ 427,280 8 years $ 52,000 Assume straight line depreciation method is used. Required: 1. Calculate the accounting rate of return for Bartlett. Note: Round your percentage answer to 2 decimal places. 2. Calculate the payback period for Bartlett. Note: Round your answer to 2 decimal places. 1. Accounting Rate of Return Print 2. Payback Period References % years

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Question
2
10
points
&
01:46:23
eBook
Hint
Bartlett Car Wash Company is considering the purchase of a new facility. It would allow Bartlett to increase its net income by $91,438
per year. Other information about this proposed project follows:
Initial investment
Useful life
Salvage value
$ 427,280
8 years
$ 52,000
Assume straight line depreciation method is used.
Required:
1. Calculate the accounting rate of return for Bartlett.
Note: Round your percentage answer to 2 decimal places.
2. Calculate the payback period for Bartlett.
Note: Round your answer to 2 decimal places.
1. Accounting Rate of Return
Print
2. Payback Period
References
%
years
Transcribed Image Text:2 10 points & 01:46:23 eBook Hint Bartlett Car Wash Company is considering the purchase of a new facility. It would allow Bartlett to increase its net income by $91,438 per year. Other information about this proposed project follows: Initial investment Useful life Salvage value $ 427,280 8 years $ 52,000 Assume straight line depreciation method is used. Required: 1. Calculate the accounting rate of return for Bartlett. Note: Round your percentage answer to 2 decimal places. 2. Calculate the payback period for Bartlett. Note: Round your answer to 2 decimal places. 1. Accounting Rate of Return Print 2. Payback Period References % years
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