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Question Content Area Payback, Accounting Rate of Return, Net Present Value, Internal Rate of Return Woodard Company wants to buy a numerically controlled ( NC
Question Content Area
Payback, Accounting Rate of Return, Net Present Value, Internal Rate of Return
Woodard Company wants to buy a numerically controlled NC machine to be used in producing specially machined parts for manufacturers of trenching machines. The outlay required is $ The NC equipment will last five years with no expected salvage value. The expected aftertax cash flows associated with the project follow:
Year Cash Revenues Cash Expenses
$ $
Required:
Compute the NC equipment's ARR. Enter as a percent and round your answer to one decimal place.
Accounting rate of return
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