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Robins Hardware is adding a new product line that will require an investment of $1,512,000. Managers estimate that this investment will have a 10 -year
Robins Hardware is adding a new product line that will require an investment of $1,512,000. Managers estimate that this investment will have a 10 -year life and generate net cash intlows of $330.000 the first year, $290.000 the second year, and $260,000 each yoar thereafter for eight years. Assume the project has no residual value. Compute the ARR for the investmont. Round to two places: Select the formula, then enter the amounts to calculale the ARR (Bccounting rate of return) for the new product lne. (Round ARR to the nearest hundredin percent ftwo decimal places) %
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