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A company invests in a new asset. Over 5 years it generates a total profit after deprecation of 3 million. Corporation tax of 2 5

A company invests in a new asset. Over 5 years it generates a total profit after deprecation of 3 million. Corporation tax of 25% is payable on profits. The asset cost 6 million to purchase and it has a value of 2 million at the end of year 5.
What is the accounting rate of return?
Question 2Select one:
a.
15%
b.
11.25%
c.
50%
d.
75%

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