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=========== ACCOUNTING problem. Please answer in details to get positive ratings. Thanks You are planning to invest $75,000 in new equipment. This investment will generate
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ACCOUNTING problem. Please answer in details to get positive ratings.
Thanks
You are planning to invest $75,000 in new equipment. This investment will generate net cash flows of $45,000 a year for the next 2 years. The salvage value after 2 years is zero. The cost of capital is 25% a year. c) Compute the accounting rate of return (ARR). To compute ARR, first compute: annual depreciation $ 37500 annual income=$ 7500 average investment- 75000 ARR 10 If your answer is 10%, enter 10 without the percent signStep by Step Solution
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