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A company is evaluating an investment. The company uses the straight-line method of depreciation. Use the following information to compute the accounting rate of return.

A company is evaluating an investment. The company uses the straight-line method of depreciation. Use the following information to compute the accounting rate of return. Show your calculations and round to one decimal place. image text in transcribed
Q2/ A company is evaluating an investment. The company uses the straight-line method of depreciation. Use the following information to compute the accounting rate of return. Show your calculations and round to one decimal place. Investment Project SR875,000 0 Residual value Operating income: Year 1 Year 2 Year 3 Year 4 Year 5 120,000 120,000 120,000 120,000 120,000

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