please answer text form. CASBartlett Car Wash Company is considering the purchase of a new facility. It would allow Bartlett to increase its net income by $100,429per year. Other information about this proposed project follows:$ 475,965Initial investmentUseful life9 yearsSalvage value$ 54,000Assume 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 Return2. Payback Period%years

Accounting rate of return is the net income divided by the investment Payback period is the period…

Answered: bout this proposed project follows: $…

bout this proposed project follows: $ 475,965 9 years $ 54,000 ation method is used. rate of return for Bartlett tage answer to 2 decimal places.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Present Value

Present value (PV) is defined as the current or present value of all future sums of cash flow or money at a specified rate of return. This rate of return is known as the discounted rate, which is essentially the interest rate, discounted over some time. The expected cash flows are discounted at a discount rate to compute the present value. The higher the discount rate, the higher the future value (FV), but the lower the present value.

Question

please answer text form.

CAS
Bartlett Car Wash Company is considering the purchase of a new facility. It would allow Bartlett to increase its net income by $100,429
per year. Other information about this proposed project follows:
$ 475,965
Initial investment
Useful life
9 years
Salvage value
$ 54,000
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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