9-21

Robertson Hardware is adding a new product line that will require an investment of $1,512,000. Managers estimate that this investment will have a 10-year ife and generate net cash infows of $330,000 the first year. $270.000 the second year and $260.000 each your thereafter for eight years. Assume the project has no residual value. Computo the ARR for the Investment Round to two places Somettre formula, then enter the amounts to calculate the ARR (accounting rate of return) for the new product in (Round ARA to the nearest hundredth percent (wo decimal plac XXX ARR %