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Delta Inc. is considering purchasing some new equipment costing $400,000. The equipment will be depreciated on a straight-line basis to a zero-book value over the
Delta Inc. is considering purchasing some new equipment costing $400,000. The equipment will be depreciated on a straight-line basis to a zero-book value over the four-year life of the project. Projected net income for the four years is $18,900, $21,300, $26,700, and $25,000. What is the average accounting rate of return? Average Book Value: $200,000 Question 17 options: 11.49 % 11.93% 11.66% 12.22%
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