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The company is considering a new computer system that has an inital investment of $50,000. Annual expected incremental revenue is $12,000, and annual expected incremental
The company is considering a new computer system that has an inital investment of $50,000. Annual expected incremental revenue is $12,000, and annual expected incremental operating expense is $1,000. The expected useful life of the system is 5 years. There is no salvage value of the system. The annual accrual accounting rate of return is: A) 0.02 B) 0.13 C) 0.22 D) none of the above
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