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Fletcher Corp. is considering the purchase of a new piece of equipment. The equipment will have an initial cost of $475,000, a 5 year life,

Fletcher Corp. is considering the purchase of a new piece of equipment. The equipment will have an initial cost of $475,000, a 5 year life, and a salvage value of $145,000. If the accounting rate of return for the project is 8%, what is the annual increase in net cash flow? Ignore income taxes.

$28,000

$104,000

$38,000

$66,000

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