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The following data concerns a proposed equipment purchase: Cost $58,000 Salvage value $ 3,000 Estimated useful life 5 years Annual net cash flows $18,000 Depreciation

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The following data concerns a proposed equipment purchase: Cost $58,000 Salvage value $ 3,000 Estimated useful life 5 years Annual net cash flows $18,000 Depreciation method Straight-line Assuming that net cash flows are received evenly throughout the year, the accounting rate of return is: 24.13% 20.98% 22.95% 59.00% 25.45%

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