Q1) Martin is analyzing a project and has gathered the following data. Based on this data, what is the average accounting rate of return? The firm depreciates it assets using straight-line depreciation to a zero book value over the life of the asset.
13.08%
15.77%
21.83%
26.17%
31.54%
Q2) Two contractors decide to enter into a joint venture on a project. What difficulties can occur if the contractors have decide on who does what work, what changes may take place if problems occur? What happens if one contractor has higher salary levels and overhead rates?