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Palmer Corporation is considering the purchase of a new piece of equipment. The cost savings from the equipment would result in an annual increase in
Palmer Corporation is considering the purchase of a new piece of equipment. The cost savings from the equipment would result in an annual increase in net operating income of $153,000. The equipment will have an initial cost of $510,000 and a 7-year useful life. If the salvage value of the equipment is estimated to be $27,000, what is the accounting rate of return?
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