A Firm is considering undertaking a project that would yield annual profits (after
depreciation) of Rs 68,000 for 5 years. The initial outlay of the project would be Rs
800,000 and the project's assets would have a residual value of Rs 50,000 at the end of the
project. What would be the accounting rate of return for this project?
A 16%
B 8.5%
C 8.0%
D 9.1%
depreciation) of Rs 68,000 for 5 years. The initial outlay of the project would be Rs
800,000 and the project's assets would have a residual value of Rs 50,000 at the end of the
project. What would be the accounting rate of return for this project?
A 16%
B 8.5%
C 8.0%
D 9.1%