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Calculate Accounting Rate of Return on the equipment? Gum Company is considering buying a piece of equipment that will cost $232,000 and have no salvage

Gum Company is considering buying a piece of equipment that will cost $232,000 and have no salvage value. The  Calculate Accounting Rate of Return on the equipment?

Gum Company is considering buying a piece of equipment that will cost $232,000 and have no salvage value. The net present value of the equipment was calculated to be $95,700 using a cost of capital of 12%. The equipment has a payback period of 4 years.

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The Accounting Rate of Return ARR for the equipment is 3531 Heres how I calculated it Calculate the ... blur-text-image

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