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Question 4 1 pts Book-o-rama needs to purchase new book shelves for its store. The cost for the shelves will be $300,000. Due to the

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Question 4 1 pts Book-o-rama needs to purchase new book shelves for its store. The cost for the shelves will be $300,000. Due to the extra space, these shelves will bring in an additional $200,000. The estimated annual expenses for these shelves is $125,000. There is no salvage value for the shelves. What is the accounting rate of return? C 25% C 66% C 50% C 33% Question 5 4 pts The Stone Angel Hotel is looking to increase foot-traffic by adding a pool to its grounds. Management's hurdle rate for any of its investments is 8%. Find below data relevant to this proposed capital project. Pool Initial Cost $ 210,000 Annual cash inflows $ 70,000 Annual cash outflows $ 30,000 Salvage value Estimated useful life 10 years The asset is expected to generate cash flows over its useful life. Required: 1.) Show your work in calculating the pool's net present value. 2.) Do you recommend the company invest in the pool? Why

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