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The ABC Company is currently earning an average before-tax return of 25% on its total investment. The board of directors of ABC is considering three
The ABC Company is currently earning an average before-tax return of 25% on its total investment. The board of directors of ABC is considering three proposals as given in the table. Using the attainable MARR of 25%, which of these three proposals are acceptable? Solve the problem using rate of return method. Year Proposal-A Proposal-B Proposal-C 0 -40,000 -60,000 -50,000 1 18,000 25,000 27,000 2 18,000 25,000 27,000 3 18,000 25,000 27,000 4 18,000 25,000 27,000
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