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capital investment project requires an investment of 50,000 and has an expected life of four years. Annual cash flows, which occur evenly throughout the year,
capital investment project requires an investment of 50,000 and has an expected life of four years. Annual cash flows, which occur evenly throughout the year, are expected to be as follows: Year 1 10,000; year 2 20,000; year 3 30,000; year 4 40,000. If depreciation is 12,500 per year, the accounting rate of return based on the average investment would be
Select one:
a. 30%
b. 25%
c. 10%
d. 15%
e. 50%
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