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Juniper Corporation is considering two alternative investment proposals with the following data: Proposal X Proposal Y Investment $810,000 $489,000 Useful life 8 years 8 years

Juniper Corporation is considering two alternative investment proposals with the following data:

Proposal X

Proposal Y

Investment

$810,000

$489,000

Useful life

8 years

8 years

Estimated annual net cash inflows for 8 years

$150,000

$96,000

Residual value

$19,000

$

Depreciation method

Straightline

Straightline

Required rate of return

12%

11%

What is the accounting rate of return for Proposal Y? (Round any intermediary calculations to the nearest dollar, and round your final answer to the nearest hundredth of a percent, X.XX%.)

A. 6.31% B. 12.50% C. 19.63% D. 7.13%

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