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An investment has an initial cost of $300,000 and a life of four years. This investment will be 100 percent depreciated (straight line) over four
An investment has an initial cost of $300,000 and a life of four years. This investment will be 100 percent depreciated (straight line) over four years and will generate the net income shown below: Year Net Income ($) 1 24,500 2 22,900 3 26,000 4 28,400 The company has a policy of accepting the investment if the investment has an average accounting return (AAR) of more than 18 percent. Should the company accept this investment
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