Project A requires a $280,000 initial investment for new machinery with a five-year life and a salvage
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Project A requires a $280,000 initial investment for new machinery with a five-year life and a salvage value of $30,000. Project A is expected to yield annual income of $20,000 per year and net cash flow of $70,000 per year for the next five years. Compute Project A’s accounting rate of return.
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Answer 4 years Explanation Payback period is the time in which a project returns bac...View the full answer
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