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1. Sayer Tool Co. is considering investing in specialized equipment costing $620,000. The equipment has a useful life of five years and a residual value
1. Sayer Tool Co. is considering investing in specialized equipment costing $620,000. The equipment has a useful life of five years and a residual value of $69,000. Depreciation is calculated using the straight line method.
2. The company is evaluating three possible investments. What is the accounting rate of return for project B?
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