Doorstep Cleaners is considering whether to purchase a delivery


Question Description:

24.99

Doorstep Cleaners is considering whether to purchase a delivery truck that will cost $50,000, last six years, and have an estimated residual value of $5,000. Average annual net income from the delivery service is estimated to be $4,000. Doorstep Cleaners’ owners seek to earn an accounting rate of return of 10 percent. Compute the average investment cost and the accounting rate of return. Round your accounting rate of return answer to one decimal place. Average investment cost$ Accounting rate of return %

Answer

24.99