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An initial imvestment of $40,000 in Blue's Bunks is expected to pay off greatly-but not equally-in each of the next 5 years. The company expects
An initial imvestment of $40,000 in Blue's Bunks is expected to pay off greatly-but not equally-in each of the next 5 years. The company expects a small increase in operating income in year 1 of $4,500, but then steadily larger improvements in profitability in years 25 : $10,000,$21,875,$20,750, and $24,625, respectively. The year prior to this investment, the company's ARR was 9%, and its taxrate was 20%. What level of ARR does this projection provide? (Round answer to 2 decimal places, e.g. 15.25\%.) ARR % Is it likely that the company will move forward with this investment
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