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Hayolom is analyzing a project and has gathered the following data. The firm depreciates its assets using straight-line depreciation to a zero book value over
Hayolom is analyzing a project and has gathered the following data. The firm depreciates its assets using straight-line depreciation to a zero book value over the life of the asset. What is the project's average accounting rate of return? Year lo 1 2 3 Cash Flow -$208,000 $78,500 $80,500 $81,800 $81,900 Net Income n/a $6,500 $8.500 $9.800 $9.900 14 Multiple Choice 8.54% O 6.41% 7.21% O 6.02% 8.34%
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