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Camino Company is considering an investment expected to generate an average net income after taxes of $3,825 for three years. The investment costs $90,000 and

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Camino Company is considering an investment expected to generate an average net income after taxes of $3,825 for three years. The investment costs $90,000 and has an estimated $12,000 salvage value. Compute the accounting rate of return for this investment; assume the company uses straight-line depreciation. Hint: Use the following formula when computing the average annual investment

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