Mathematics · Financial Management
A project requires an initial investment of Rs. 56,125 and its estimated salvage value is Rs. 3,000. The annual estimated incomes after depreciation and tax for its entire life of 5 years are Rs. 3,375, Rs. 5,375, Rs. 7,375, Rs. 9,375, and Rs. 11,375 respectively. Which one of the following is its Accounting (Average) Rate of Return (ARR) based on average investment?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 160.88%
- 229.94%
- 3124.94%
- 424.94%✓
Correct answer
24.94%
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