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JP Ltd has a six-year project whose initial cash outlay is Sh. 400,000. The project has a zero salvage value and is expected to generate
JP Ltd has a six-year project whose initial cash outlay is Sh. 400,000. The project has a zero salvage value and is expected to generate the following accounting profits.
\begin{tabular}{|l|l|l|l|l|l|l|} \hline Year & 1 & 2 & 3 & 4 & 5 & 6 \\ \hline Earnings after tax (in Sh 000) & 50 & 70 & -20 & 80 & 40 & 30 \\ \hline \end{tabular} Compute the ARR of the projectStep by Step Solution
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