Unadjusted rate of return
Adjusted rate of return, Finding the present value table, and conduct a payback calculation
………………………….Answer preview……………………………..
Unadjusted rate of return
Using original investment method
=(average annual net income)/(original investment amount)×100
=($70,000÷$410,000)×100
=17.07%
Using average investment method
= (average annual net income)/(average investment amount) ×100
Average investment amount = original investment value – salvage value
= $410,000 – $41,000
= $369,000
Unadjusted rate of return = ($70,000 ÷ $ 369,000) × 100
= 18.97%
Assignment exercise 12-3. Finding the present value (with a present value table)……………………………..
APA
207 words
