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24 2.5 pts Landrum Corporation is considering investing in specialized equipment costing $250,000. The equipment has a useful life of 5 years and a residual
24 2.5 pts Landrum Corporation is considering investing in specialized equipment costing $250,000. The equipment has a useful life of 5 years and a residual value of $20,000. Depreciation is calculated using the straight-line method. The expected net cash inflows from the investment are: Year 1 Year 2 Year 3 Year 4 Year 5 $60,000 $90,000 $110,000 $40,000 $25,000 $325,000 Total cash inflows Landrum Corporation's required rate of return on investments is 12%. What is the accounting rate of return on the investment? 7.60% 26.00% 5.85% 18.40%
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