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A new project has an initial cost of $275,000. The equipment will be depreciated on a straight-line basis to a zero book value over the
A new project has an initial cost of $275,000. The equipment will be depreciated on a straight-line basis to a zero book value over the 5-year life of the project. The projected net income each year is $14,200, $17,500, $20,720, $13,100, and $15,800, respectively. What is the average accounting return?
Average Accounting Return = %
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