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A Company is trading in a fully depreciated old asset for a new one. Cost of the new asset is (the first five digits of
A Company is trading in a fully depreciated old asset for a new one.Cost of the new asset is(the first five digits of your student number)with a 5-year life and straight-line depreciation will be used. The company receives a $500 allowance for the asset traded in. Additional sales revenue from the investment will be $2,100 and expenses of $400 (excluding depreciation). The company is in a 25%tax bracket.
What is the ARR for this investment?
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