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Sony Lavery is considering investing $45,000 in a project with the following cash revenues and expenses: Year Year 1 Year 2 Year 3 Year 4
Sony Lavery is considering investing $45,000 in a project with the following cash revenues and expenses: Year Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Revenues $18,000 $22,000 $22,000 $24,000 $26,000 $28,000 $28,000 $28,000 Cash Expenses & Depreciation $8,000 $10,000 $9,000 $9,000 $9,000 $12,000 $11,000 $12,000 What is the accounting rate of return for the project? a. 20% b. 26% c. 32% d. 41% e. 35%
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