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Project A requires a $335,000 initial investment for new machinery with a five-year life and a salvage value of $49,500. The company uses straight-line depreciation.
Project A requires a $335,000 initial investment for new machinery with a five-year life and a salvage value of $49,500. The company uses straight-line depreciation. Project A is expected to yield annual net income of $28,400 per year for the next five years. Compute Project As accounting rate of return. Note that the top boxes are a drop down selection of words. |
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