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The following data concerns a proposed equipment purchase: Cost $ 136,400 Salvage value $ 3,600 Estimated useful life 4 years Annual net cash flows $
The following data concerns a proposed equipment purchase:
Cost | $ | 136,400 | |
Salvage value | $ | 3,600 | |
Estimated useful life | 4 | years | |
Annual net cash flows | $ | 45,700 | |
Depreciation method | Straight-line |
The annual average investment amount used to calculate the accounting rate of return is:
Multiple Choice
$68,200
$66,400
$34,100
$70,000
$45,350
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