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The following data concerns a proposed equipment purchase: $278,000 $ 6,000 Cost Salvage value Estimated useful life Annual net cash flows Depreciation method 8 years
The following data concerns a proposed equipment purchase: $278,000 $ 6,000 Cost Salvage value Estimated useful life Annual net cash flows Depreciation method 8 years $ 46, 360 Straight-line Assuming that net cash flows are received evenly throughout the year, the accounting rate of return is: 34.09% 32.64% Q 8.35% 8.70% 16.67%
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