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Shelley Company uses the Accounting Rate of Return to help in making capital investment decisions. They give you the following information about the purchase of

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Shelley Company uses the Accounting Rate of Return to help in making capital investment decisions. They give you the following information about the purchase of a new plant. The plant, a depreciable asset, has a 10-year life, will cost $1,000,000 with zero salvage value Cash Revenues minus Cash Expenses Years 1-3 $100,000 each year Years 4-7 $200.000 each year Years 8-10 $400,000 each year The Accounting Rate of Return for the plant will be 26% O 13% O 46% 36% O Cannot be determined from the given information

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