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Sice Golr Products is considering whether to upgrade its equipment. Managers are considering two options. Equipment manulactured by Ablas inc costs 5950,000 and wili last
Sice Golr Products is considering whether to upgrade its equipment. Managers are considering two options. Equipment manulactured by Ablas inc costs 5950,000 and wili last fou years and have no residual value. The Allas equipment will gonerate annual cperating income of $171,000. Equipment manufactured by Riverside Limited costs $1,125,000 and w remain useful for five years. It promises annual operating income of $236,250, and its expected residual value is $115,000. Which equpment offers the higher ARR? First, enter the formula, then calculate the ARR (Accounting Rate of Return) for both pieces of equipment (Einter the arswer as a porcent rounded to ite rearest tenth percent. Sice Golr Products is considering whether to upgrade its equipment. Managers are considering two options. Equipment manulactured by Ablas inc costs 5950,000 and wili last fou years and have no residual value. The Allas equipment will gonerate annual cperating income of $171,000. Equipment manufactured by Riverside Limited costs $1,125,000 and w remain useful for five years. It promises annual operating income of $236,250, and its expected residual value is $115,000. Which equpment offers the higher ARR? First, enter the formula, then calculate the ARR (Accounting Rate of Return) for both pieces of equipment (Einter the arswer as a porcent rounded to ite rearest tenth percent
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