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Addison Corp. is considering the purchase of a new piece of equipment. The equipment will have an initial cost of $944,000, a 4 year life,
Addison Corp. is considering the purchase of a new piece of equipment. The equipment will have an initial cost of $944,000, a 4 year life, and no salvage value. If the accounting rate of return for the project is 6%, what is the annual increase in net cash flow? Ignore income taxes.
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