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Landrum Corporation is considering investing in specialized equipment costing S240,000. The equipment has a useful life of 5 years and a residual value of $30,000

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Landrum Corporation is considering investing in specialized equipment costing S240,000. The equipment has a useful life of 5 years and a residual value of $30,000 Depreciation is calculated using the straight-line method. The expected net cash flows from the investment are Year 1 $40,000 Year 2 $80.000 Year 3 $100.000 Year 4 $20,000 Year 5 $15.000 Total cash inflows 235 000 Landrum Corporation's required rate of return on investments is 20% What is the accounting rate of return on the investment? OA 2.13% OB 208% OC 17.50% OD 1958% Click to select your

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