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Addison Corporation is considering the purchase of a new piece of equipment. The equipment will have an initial cost of $ 8 7 6 ,

Addison Corporation is considering the purchase of a new piece of equipment. The equipment will have an initial cost of $876,000 and a 4-year useful life with no salvage value. If the accounting rate of return for the project is 5%, what is the annual increase in net cash flow?
Multiple Choice
$43,800
$175,200
$219,000
$262,800

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