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@Sir John Moffat The average rate of returm is:
Average profits/ Average investment. . . where average investment is the. . .opening investment + scrap value/ 2
However in the the kaplan exam kit ‘q19 armcliff co’ the average capital employed has been calculated by adding the book values of the asset over its life of 4 years and then dividing by 4.
This has really confused me and i would appreciate it if you could explain this to me
Thankyou
@Sir John Moffat The average rate of returm is:
Average profits/ Average investment. . . where average investment is the. . .opening investment + scrap value/ 2
However in the the kaplan exam kit ‘q19 armcliff co’ the average capital employed has been calculated by adding the book values of the asset over its life of 4 years and then dividing by 4.
This has really confused me and i would appreciate it if you could explain this to me
Thankyou