6. A project will cost 400,000. Its stream of earnings before depreciation, interest and taxes (EBDIT) during
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6. A project will cost 400,000. Its stream of earnings before depreciation, interest and taxes (EBDIT) during first year through five years is expected to be 100,000, 120,000, 140,000, 160,000 and 200,000. Assume a 30 per cent tax rate and depreciation on straight-line basis. Calculate the project's accounting rate of return.
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