Please help me Bartlett Car Wash Company is considering the purchase of a new facility. It would allow Bartlett to increase its net income by $85,115per year. Other information about this proposed project follows:$ 421,3608 years$ 46,000Assume 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.Initial investmentUseful lifeSalvage value2. Calculate the payback period for Bartlett.Note: Round your answer to 2 decimal places.1. Accounting Rate of Return2. Payback Period36.42%7.21 years

Payback period method : It is the time taken for the cash flow of incomes for a particular project…

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.

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.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 1PA: Your company is planning to purchase a new log splitter for is lawn and garden business. The new...

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Question

Please help me

Bartlett Car Wash Company is considering the purchase of a new facility. It would allow Bartlett to increase its net income by $85,115
per year. Other information about this proposed project follows:
$ 421,360
8 years
$ 46,000
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.
Initial investment
Useful life
Salvage value
2. Calculate the payback period for Bartlett.
Note: Round your answer to 2 decimal places.
1. Accounting Rate of Return
2. Payback Period
36.42%
7.21 years

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