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Aqua Shop is considering the purchase of a used printing press costing $15,000. The printing press would generate a net cash inflow of $6,000
Aqua Shop is considering the purchase of a used printing press costing $15,000. The printing press would generate a net cash inflow of $6,000 per year for four years. At the end of four years, the press would have no salvage value. The company's cost of capital is 12%. The company uses straight-line depreciation with no mid-year convention. What is the accounting rate of return on the original Investment in the press rounded to the nearest percent, assuming no taxes are paid? Oa. 9% Ob. 15% Oc. 20% Od. 41%
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