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(TCO 6) A company projects annual cash inflows of $90,000 each year for the next 5 years if it invests $450,000 in new equipment. The
| (TCO 6) A company projects annual cash inflows of $90,000 each year for the next 5 years if it invests $450,000 in new equipment. The equipment has a 5-year life and an estimated salvage value of $150,000. What is the accounting rate of return on this investment? (Points : 5) |
13.3%
20%
33.3%
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Financial Accounting
Authors: W Steve Albrecht, Earl K Stice
11th Edition
0538746955, 9780538746953
