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Container Ltd, a manufacturing firm, is considering investing $100,000 in a new mainframe computer. It is estimated that net cash flow per year will be
Container Ltd, a manufacturing firm, is considering investing $100,000 in a new mainframe computer. It is estimated that net cash flow per year will be $5000. The computer will have a 10-year useful life, and zero residual value. The machine will be depreciated on a straight-line basis. What is the accounting rate of return?
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