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Investment Appraisal using ARR Technique
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Investment Appraisal using ARR Technique

Created by
@SmittenHyperbole

Questions and Answers

What is the investment outlay for Proposal II?

  • RO 4,000
  • RO 50,000
  • RO 8,000
  • RO 200,000 (correct)

    • What is the salvage value at the end of the project for Proposal II?

  • RO 8,000
  • RO 27,000
  • RO 11,000 (correct)
  • RO 4,000

    • Based on the ARR technique, which proposal should be accepted?

  • Proposal II
  • Neither Proposal
  • Proposal I (correct)
  • Both proposals

    • What is the average accounting return (ARR) for the Bluerock Group's high-tech project?

    <p>18.75%</p> Signup and view all the answers

    What is the total pre-tax income generated by the Bluerock Group's project over the 3 years?

    <p>$6,500</p> Signup and view all the answers

    What is the total depreciation expense over the 3 years for the Bluerock Group's project?

    <p>$7,500</p> Signup and view all the answers

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