Another new freezer is required by a mini-mart, and the first expenditure will be $300,000. Including cost savings, additional revenues are $200,000, while incremental costs, which include depreciation, are $125,000. No salvage value exists. The accounting rate of return (ARR) is what. No decimal places; round to the nearest entire percent.

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 7EA: A mini-mart needs a new freezer and the initial Investment will cost $300,000. Incremental revenues,...
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Another new freezer is required by a mini-mart, and the first expenditure will be $300,000. Including
cost savings, additional revenues are $200,000, while incremental costs, which include depreciation, are
$125,000. No salvage value exists. The accounting rate of return (ARR) is what. No decimal places; round
to the nearest entire percent.
Transcribed Image Text:Another new freezer is required by a mini-mart, and the first expenditure will be $300,000. Including cost savings, additional revenues are $200,000, while incremental costs, which include depreciation, are $125,000. No salvage value exists. The accounting rate of return (ARR) is what. No decimal places; round to the nearest entire percent.
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