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A new project has an initial cost of $166,000. The equipment will be depreciated on a straight-line basis to a book value of $61,000 at
A new project has an initial cost of $166,000. The equipment will be depreciated on a straight-line basis to a book value of $61,000 at the end of the four-year life of the project. The projected net income each year is $15,100, $18,000, $23,200, and $15,000, respectively. What is the average accounting return?
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