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Required information [ The following information applies to the questions displayed below. ] Project A requires a $ 3 9 0 , 0 0 0

Required information
[The following information applies to the questions displayed below.]
Project A requires a $390,000 initial investment for new machinery with a five-year life and a salvage value of $34,500.
The company uses straight-line depreciation. Project A is expected to yield annual net income of $29,100 per year for the
next five years.
Compute Project A's accounting rate of return.
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