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Cullumber Company is considering a purchase of equipment that costs $79800. The equipment has a 6-year life and no salvage value. Cullumber uses straight-line depreciation.

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Cullumber Company is considering a purchase of equipment that costs $79800. The equipment has a 6-year life and no salvage value. Cullumber uses straight-line depreciation. The equipment has a payback period of 4 years. The accounting rate of return is closest to O 4.2% 8.3%. 25.0%. 41.7%

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