Exercise 9-18 Payton and Finley Davis run a real estate
brokerage firm. They have just moved into a new building and want
to add some outdoor digital signage to advertise the firm’s
services. The sign they are considering has two display areas that
can display two different images at the same time and costs
$178,200. It is expected to have a useful life of 6 years. In an
effort to recoup the cost of the sign, Payton and Finley will rent
one display panel to other tenants in the building for $37,900 a
year. Electricity to power the sign is expected to be $1,080 per
year. Calculate the annual net operating income generated by the
new sign. Annual net operating income $ 5570 LINK TO TEXT LINK TO
VIDEO Calculate the accounting rate of return of the new sign.
(Round answer to 2 decimal places, e.g. 52.75%.) Accounting rate of
return % LINK TO TEXT LINK TO VIDEO If the sign is successful in
generating new business for the firm, how will the accounting rate
of return be affected? If the sign is successful, accounting rate
of return will .
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