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Mike inc has a project that produces annual net income of $14,600, $18,700 and $23,500 over three years respectively. The initial cost of the project
Mike inc has a project that produces annual net income of $14,600, $18,700 and $23,500 over three years respectively. The initial cost of the project is $310,800. this cost is depreciated straight line to a zero book value over three years while the project has a 34% marginal tax rate. What is the average accounting rate of return if the required discount rate is 9%?
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