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A- Normal No Spacing Siesta Manufacturing has asked you to evaluate a capital investment project. The project will require an initial investment of $88,000. The
A- Normal No Spacing Siesta Manufacturing has asked you to evaluate a capital investment project. The project will require an initial investment of $88,000. The life of the investment is 7 years with a residual value of $4,000. If the project produces net annual cash inflows of $16,000, what is the accounting rate of return? Group of answer choices 12.5% 4.55% 15% 18.18% In what ways are the Payback period and Accounting Rate of Return methods of capital budgeting alike? Group of answer choices They both focus on the time to recover the initial investment. They both ignore time value of money. They both focus on GAAP. They both measure the average profitability over the asset's life. United States) 09 W
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