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Morrow Company has invested in equipment that cost $70,000. The equipment has a 7-year life and no salvage value. Morrow uses straight-line depreciation. The equipment

Morrow Company has invested in equipment that cost $70,000. The equipment has a 7-year life and no salvage value. Morrow uses straight-line depreciation. The equipment has a payback period of 4 years. The accounting rate of return is closest to a. 3.5% b. 10.7% c. 25% d. 39%

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