I’m studying for my Accounting class and need an explanation.
Foz Co. is considering 4 investment proposals (A,B,C,D), The following table provides data concerning each of these investments. Compute the missing information pertaining to each investment. (round percentage answers to one decimal place)
Investment Cost
50,000
50,000
49,800
?
Est. Salvage Value
8,000
5,000
?
4,000
Average Estimated
9,000
?
5,650
4,500
Return on Average Investment
?
28%
20%
15%