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Kaylin Company purchased a piece of equipment for 100,000 that had a useful life of 5 years. The equipment had no salvage value. It saves
Kaylin Company purchased a piece of equipment for 100,000 that had a useful life of 5 years. The equipment had no salvage value. It saves the company 40,000 a year and costs the company 5,000 a year to operate. What is the accounting rate of return on the equipment?
a. 30% b. 15% c. 40% d. 35%
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