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The Digital Watch Company uses straight-line depreciation and is considering a capital expenditure for which the following relevant cash flow data have been estimated: Estimated

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The Digital Watch Company uses straight-line depreciation and is considering a capital expenditure for which the following relevant cash flow data have been estimated: Estimated useful life: Initial Investment: Savings year 1: Savings year 2: Savings year 3: Residual value after 3 yrs 3 years $300,000 $180,000 $160,000 $110.000 $60,000 The accounting rate of return is closest to 53 9.00% 2.44 23.33%

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