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Required information [The following information applies to the questions displayed below.] Falcon Crest Aces (FCA), Incorporated, is considering the purchase of a small plane
Required information [The following information applies to the questions displayed below.] Falcon Crest Aces (FCA), Incorporated, is considering the purchase of a small plane to use in its wing-walking demonstrations and aerial tour business. Various information about the proposed investment follows: Initial investment Useful life Salvage value Annual net income generated FCA's cost of capital $ 190,000 10 years $ 20,000 $ 4,400 6% Assume straight line depreciation method is used. Help FCA evaluate this project by calculating each of the following: Required: 1. Accounting rate of return. Note: Round your answer to 2 decimal places. Accounting Rate of Return %
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