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The Depot is considering a project with annual sales of $325,000 for four years. The profit margin is 4.65 percent. The initial cost for equipment
The Depot is considering a project with annual sales of $325,000 for four years. The profit margin is 4.65 percent. The initial cost for equipment will be $330,000. The equipment will be depreciated by $55,000 each year. The required average accounting rate of return is 11.4 percent. Should this project be accepted or rejected? What is the AAR? Rejected; 7.85% Accepted; 6.87% Accepted; 7.85% Rejected; 6.52% Rejected; 6.87%
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