Calculation question :A project involves the immediate purchase of plant at a cost of ￡110,000.It wuold generate annual profit of ￡4,000 for five years.Scrap value will be ￡10,000 at the end of the fifth year.Requirement Calculate the ARR using

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Calculationquestion:Aprojectinvolvestheimmediatepurchaseofplantatacostof￡110,000.Itwuoldgenerateannu

Calculation question :A project involves the immediate purchase of plant at a cost of ￡110,000.It wuold generate annual profit of ￡4,000 for five years.Scrap value will be ￡10,000 at the end of the fifth year.Requirement Calculate the ARR using
Calculation question :
A project involves the immediate purchase of plant at a cost of ￡110,000.It wuold generate annual profit of ￡4,000 for five years.Scrap value will be ￡10,000 at the end of the fifth year.
Requirement
Calculate the ARR using the initial and average investment.

Calculation question :A project involves the immediate purchase of plant at a cost of ￡110,000.It wuold generate annual profit of ￡4,000 for five years.Scrap value will be ￡10,000 at the end of the fifth year.Requirement Calculate the ARR using
initial investment 110,000dollars
average investment(110,000-4000*5-10,000)/5=16,000dollars

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