Question

  There is a project which involves purchase of a machinery that costs Rs.50,000, which has useful life of 3 years, after which it has a scrap value of Rs.10,000. The Machine gives annual profit as shown on the following timeline: What is the Accounting Rate of return of the project in question?

A 30%
B 10%
C 20%
D 6%
E None of the above
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