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1. Palmer Corp. is considering the purchase of a new piece of equipment. The cost savings from the equipment would result in an annual increase

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1. Palmer Corp. is considering the purchase of a new piece of equipment. The cost savings from the equipment would result in an annual increase in net income after tax of $141,750 The equipment wil have an initial cost of $525,000 and have a 7 year life. If the savage value of the equipment is estimated to be $14,000, what is the accounting rate of return? 16 28% 0 149.37% 0 4411% 27 00%

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