Tiberius Manufacturing is considering two alternative investment proposals with the following data: Proposal X Proposal Y Investment $ 11 comma 600 comma 000 $ 480 comma 000 Useful life 5 years 5 years Estimated annual net cash inflows for 5 years $ 2 comma 320 comma 000 $ 95 comma 000 Residual value $ 54 comma 000 $ 24 comma 000 Depreciation method Straightminusline Straightminusline Required rate of return 14% 14% Calculate the accounting rate of return for Proposal Y. (Round any intermediate calculations and your final answer to two decimal places.)

1.51%

Explanation:

The computation of the accounting rate of return is shown below:

Accounting rate of return = Average annual profit ÷ average investment

where,

Average annual profit is

= Estimated annual net cash inflows for 5 years - annual depreciation

= $95,000 - ($480,000 - $24,000) ÷ 5 years

= $95,000 - $91,200

= $3,800

And, the average annual investment is

= (Initial Investment + Scrap Value) ÷ 2

= ($480,000 + $24,000) ÷ 2

= $252,000

Now placing these values to the above formula

So, the accounting rate of return is

= $3,800 ÷ $252,000

= 1.51%

b is your answer toy your queston

explanation:

the correct answer is economics is a game without winners or losers.

unlike sports or games economic is a game without losers or winner rather it is a game where everyone wins. parties of business doing businesses exchange money with each other and hence exchange is done on the basis of goods. one party takes the goods and other sales it so there is winner on both sides. each party values more highly the good it gets than the good it gives up. both sides exchange only because both intend to increase their value. so there is no concept of lose or win.