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follows: c . Suppose that a project has an ARR of 3 0 % ( based on initial investment ) and that the average net
follows:
c Suppose that a project has an ARR of based on initial investment and that the average net income of the project is $
d Suppose that a project has an ARR of and that the investment is $
Required:
Compute the ARR on the new equipment that Cobre Company is considering. Round your answer to one decimal place.
preferred over the other.
ARR
Project A
Project B
Based on the ARR, Emily Hansen chosen Project A
How much did the company in Scenario c invest in the project? Round your answer to the nearest whole dollar.
$
What is the average net income earned by the project in Scenario d
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