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Assuming no residual value, and using the minimum average annual expected cash inflows from the first part of the preceding requirement, determine the accounting rate
Assuming no residual value, and using the minimum average annual expected cash inflows from the first part of the preceding requirement, determine the accounting rate of return and the payback period. How does the payback period compare to the assets estimated useful life? Is it wise to use the payback method to compare investments whose assets have very different estimated useful lives?
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