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just cant figure out the formula to get to answer D Gomez Corporation is considering two alternative investment proposals with the following data: Proposal X

just cant figure out the formula to get to answer D image text in transcribed
Gomez Corporation is considering two alternative investment proposals with the following data: Proposal X $850,000 8 years Proposal Y $468,000 8 years Investment Useful life Estimated annual net cash inflows for 8 years Residual value Depreciation method Required rate of return $125,000 $40,000 Straight-line 14% $78,000 $ - Straight line 10% What is the accounting rate of return for Proposal X? OA. 26.62 % inflows -depreciation OB. 2.88 % Average investment OC. 14.71% D. 2.79% 125,000 - (40,000/8) 9000

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