In calculating the accounting rate of return using the straight-line method of depreciation,the annual average investment is calculated as (beginning book value + ending book value)/2.

Name: In calculating the accounting rate of return using the straight-line method of depreciation,the annual average investment is calculated as (beginning book value + ending book value)/2.
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This is the correct formula for calculating the annual average investment when using the straight-line method of depreciation.

In Calculating the Accounting Rate of Return Using the Straight-Line