Lender Limited is considering investing in a new project. It is estimated that it will cost 100

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Lender Limited is considering investing in a new project. It is estimated that it will cost

£100 000 to implement, and that the expected net profit after tax will be as follows:

Year £
1 18000 2 47000 3 65000 4 65000 5 30000 No residual value is expected.
Required:
Calculate the accounting rate of return of the proposed project.

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