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If an equipment investment was $10,000 with a 5-year life using straight-line depreciation and provided additional annual sales revenue of $3,500 and expenses (excluding depreciation)

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If an equipment investment was $10,000 with a 5-year life using straight-line depreciation and provided additional annual sales revenue of $3,500 and expenses (excluding depreciation) of $300, and the company is in a 50% tax bracket, the accounting rate of return (ARR) is: 12.00% 5.20% 6.00% 2.60%

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