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E-gulpment purchased at a cost of $19.000 Wages will be reduced by $1,000 per year; annual cash expenses will increase by $5,400; straight-iine depreciation is
E-gulpment purchased at a cost of $19.000 Wages will be reduced by $1,000 per year; annual cash expenses will increase by $5,400; straight-iine depreciation is used: the asset has a ten-year life; the salvage value is $1.500. Use the following formula: Accounting rate of return = (average annual net cash flows - annual depreciation expense) / Initial investment What the accounting rate of return?
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