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John has an option to invest in a project that will cost $500,000 to implement. The project will last for two years until it would

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John has an option to invest in a project that will cost $500,000 to implement. The project will last for two years until it would be shut down. The incremental operating incomes are $70,000 and $90,000 in year 1 and year 2 respectively. What is the ARR of this project? Select one: a. 7.5% b. 10% c. 20% d. 16%

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