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The following data concerns a proposed equipment purchase: Cost $144,000 Salvage value $4,000 Estimated useful life 4 years Annual net cash flows $46,100 Depreciation method

The following data concerns a proposed equipment purchase:

Cost $144,000
Salvage value $4,000
Estimated useful life 4 years
Annual net cash flows $46,100
Depreciation method Straight-line

The annual average investment amount used to calculate the accounting rate of return is:

$72,000

$70,000

$37,000

$74,000

$48,950

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