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Required information (The following information applies to the questions displayed below. Peng Company is considering an investment expected to generate an average net income after
Required information (The following information applies to the questions displayed below. Peng Company is considering an investment expected to generate an average net income after taxes of $3,000 for three years. The investment costs $54,900 and has an estimated $6,900 salvage value. Compute the accounting rate of return for this investment; assume the company uses straight-line depreciation. Accounting Rate of Return Choose Denominator: Choose Numerator: Accounting Rate of Return Accounting rate of return
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