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Hiawatha Corp is considering the purchase of a new piece of equipment. The cost savings from the equipment would result in an annual increase in
Hiawatha Corp is considering the purchase of a new piece of equipment. The cost savings from the equipment would result in an annual increase in cash flow of $431,460. The equipment will have an initial cost of $2,142,000 and have a 14 year life. There is no salvage value for the equipment. What is the accounting rate of return? Ignore income taxes.
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