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Dotties Depot is considering a project with an initial cost for fixed assets of $64,000 and annual net income of $4,800 for four years. The

Dotties Depot is considering a project with an initial cost for fixed assets of $64,000 and annual net income of $4,800 for four years. The fixed assets will be depreciated straight-line over the life of the project to a zero book value. The required average accounting rate of return is 11.65 percent. Should this project be accepted or rejected? What is the AAR?

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