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Hill's Renovation Services may need to purchase a new industrial saw before the next major commercial job for $300,000. The managerial accountant reported the new
Hill's Renovation Services may need to purchase a new industrial saw before the next major commercial job for $300,000. The managerial accountant reported the new industrial saw has a useful life of 6 years and a residual value of $30,000. The new industrial saw's annual depreciation expense is computed using the straight-line depreciation expense calculation. The net cash inflows the managerial accountant expects from the investment include: Hill's Renovation Services New Industrial Saw Report Year 1 2 3 4 5 Total cash inflow: Net Cash Inflows $80,000 $75,000 $100,000 $40,000 $30,000 $325,000 What is the accounting rate of return on the new industrial saw? O 6.67% 5% 93.33% 21.67% I DON'T KNOW YET
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