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E11-2 (Algo) Calculating Accounting Rate of Return, Payback Period [LO 11-1, 11-2] Bartlett Car Wash...

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Accounting

E11-2 (Algo) Calculating Accounting Rate of Return, Payback Period [LO 11-1, 11-2] Bartlett Car Wash Company is considering the purchase of a new facility. It would allow Bartlett to increase its net income by $73,135 per year. Other information about this proposed project follows: Initial investment Useful life Salvage value $ 333,950 6 years $ 53,000 Assume straight line depreciation method is used. Required: 1. Calculate the accounting rate of return for Bartlett. Note: Round your percentage answer to 2 decimal places. 2. Calculate the payback period for Bartlett. Note: Round your answer to 2 decimal places. 1. Accounting Rate of Return 2. Payback Period % years
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E11-2 (Algo) Calculating Accounting Rate of Return, Payback Period [LO 11-1, 11-2] Bartlett Car Wash Company is considering the purchase of a new faclity. It would allow Bartiett to increase its net income by $73,135 per year. Other information about this proposed project follows: Assume straight line depreciation method is used. Required: 1. Calculate the accounting rate of return for Bartlett. Note: Round your percentage answer to 2 decimal places. 2. Calculate the payback period for Bartlett. Note: Round your answer to 2 decimal places

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