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4. Addison Corp. is considering the purchase of a new piece of equipment. The equipment will have an initial cost of $669,000, a 3 year

4. Addison Corp. is considering the purchase of a new piece of equipment. The equipment will have an initial cost of $669,000, a 3 year life, and no salvage value. If the accounting rate of return for the project is 7%, what is the annual increase in net cash flow? Ignore income taxes.

Multiple Choice

  • $176,170

  • $46,830

  • $269,830

  • $223,000

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