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ABuster Evans is considering investing $20,000 in a project with the following annual cash revenues and expenses: Cash Cash Revenues Expenses Year 1 $ 8,000
ABuster Evans is considering investing $20,000 in a project with the following annual cash revenues and expenses:
Cash | Cash | |||
Revenues | Expenses | |||
Year 1 | $ 8,000 | $ 8,000 | ||
Year 2 | $12,000 | $ 8,000 | ||
Year 3 | $15,000 | $ 9,000 | ||
Year 4 | $20,000 | $10,000 | ||
Year 5 | $20,000 | $10,000 |
Depreciation will be $4,000 per year. What is the accounting rate of return on the investment?
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