Bartlett Car Wash Company is considering the purchase of a new facility. It would allow...
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Accounting
Bartlett Car Wash Company is considering the purchase of a new facility. It would allow Bartlett to increase its net income by $79,958 per year. Other information about this proposed project follows:
Initial investment
$ 377,160
Useful life
7 years
Salvage value
$ 49,000
Assume straight line depreciation method is used.
Required:
Calculate the accounting rate of return for Bartlett.
Note: Round your percentage answer to 2 decimal places.
Calculate the payback period for Bartlett.
Note: Round your answer to 2 decimal places.
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