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The Crystal Company uses straightline depreciation and is considering a capital expenditure for which the following relevant cash flow data have been estimated: Estimated useful
The Crystal Company uses straightline depreciation and is considering a capital expenditure for which the following relevant cash flow data have been estimated: Estimated useful life: 3 years Initial investment: $400,000 Savings year 1: $160,000 Savings year 2: $150,000 Savings year 3: $90,000 Residual value after 3 yrs $30,000 The accounting rate of return is closest to | A. 0.53%. B. 37.50%. C. 2.50%. D. 15.00%. |
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