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Just need some help solving this I will rate!! Many thanks and God bless!!! Walden Industries is considering investing in production - management software that
Just need some help solving this
I will rate!!
Many thanks and God bless!!!
Walden Industries is considering investing in production - management software that costs $640,000, has $64,000 residual value, and leads to cost savings of $2,180,000 per year over its five-year life. Calculate the average amount invested in the asset that should be used for calculating the accounting rate of return O A. $704,000 O B. $640,000 O C. $64,000 OD. $352,000 Mosaic Tile Company is considering an investment in new equipment costing $856,000. The equipment will be depreciated on a straight - line basis over a five-year life and is expected to have a residual value of $70,000. The equipment is expected to generate net cash inflows of $1,004,000 in total during the five-year life. What is the accounting rate of return associated with the equipment investment? (Round your answer to two decimal places.) O A. 9.37% OB. 9.42% O C. 13.93% OD. 44.00%Step by Step Solution
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