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An initial investment of $ 6 0 , 0 0 0 in Skysong's Bunks is expected to pay off greatly, but not equally, in each

An initial investment of $60,000 in Skysong's Bunks is expected to pay off greatly, but not equally, in each of the next 5yeras. The company expects a small increase in operating income in year 1 of $5,000, then steadily larger improvements in profitability in years 2-5: $10,875, $19,375, $27,125, respectively. The year prior to this investment, the company's ARR was 9% and its tax rate was 20%.
What level of ARR does this projection provide?
ARR _______%
Is it likely that the company will move forward with this investment? (Yes or No)

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