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Project A requires a $400,000 initial investment for new machinery with a five-year life and a salvage value of $45,000. Project A is expected to
Project A requires a $400,000 initial investment for new machinery with a five-year life and a salvage value of $45,000. Project A is expected to yield annual income of $21,100 per year and net cash flow of $100,000 per year for the next five years. what is the accounting rate of return
\begin{tabular}{|l|l|c|c|c|c|} \hline \multicolumn{3}{|c|}{ Accounting Rate of Return } \\ \hline Numerator: & / & Denominator: & = & Accounting Rate of Return \\ \hline Average investment & / & = & \multicolumn{2}{|c|}{ Accounting rate of return } \\ \hline & & & & 0 & \\ \hline \end{tabular}Step by Step Solution
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