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please help me solve this problem using calculator functions What is the average accounting rate of return (ARR) on a piece of equipment that will
please help me solve this problem using calculator functions
What is the average accounting rate of return (ARR) on a piece of equipment that will cost $1,056,000 and that will result in pretax cost savings of $334,000 for the first three years and then $246,000 for the following three years? Assume that the machinery will be depreciated to a salvage value of 0 over six years using the straight-line method and the company's tax rate is 32 percent. (Round final answer to 1 decimal place, e. . 527.5.) Average accounting rate of return If the acceptance decision is based on the project exceeding an ARR of 20 percent, should this machinery be purchased? The machinery be purchased Step by Step Solution
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