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The following data concerns a proposed equipment purchase: Cost $151,600 Salvage value $4,400 Estimated useful life 4 years Annual net cash flows $46,500 Depreciation method
The following data concerns a proposed equipment purchase:
Cost | $151,600 |
Salvage value | $4,400 |
Estimated useful life | 4 years |
Annual net cash flows | $46,500 |
Depreciation method | Straight-line |
The annual average investment amount used to calculate the accounting rate of return is:
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