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15. Gibson Inc. is considering the purchase of equipment costing $150,000. The equipment has a 12- year useful life and no salvage value. The equipment

15. Gibson Inc. is considering the purchase of equipment costing $150,000. The equipment has a 12- year useful life and no salvage value. The equipment will generate $25,000 in annual cash flows. The company has a 10% required rate of return and uses the straight-line depreciation method. The accounting rate of return on this equipment is closest to:

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