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is it 22% ! help asap! Mercer Co. sells glass and plastic bottles in bulk. They need to purchase a large piece of warehouse equipment
is it 22% ! help asap!
Mercer Co. sells glass and plastic bottles in bulk. They need to purchase a large piece of warehouse equipment in order to fulfill all of their Christmas orders. This piece of equipment will cost an initial $200,000 and has a 5-year useful life with $10,000 salvage value. The yearly cash flows for Mercer Co. will be $65,000, $50,000, $105,000, $100,000, and $110,000. Mercer Co. decides to utilize the Accounting Rate of Return (ARR) to value this investment. What is the ARR of this investment? 22% 43% 24% 100% Step by Step Solution
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