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The following data concerns a proposed equipment purchase: Cost Salvage value Estimated useful life Annual net cash flows Depreciation method $150,000 $ 7,000 4 years

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The following data concerns a proposed equipment purchase: Cost Salvage value Estimated useful life Annual net cash flows Depreciation method $150,000 $ 7,000 4 years $ 49, 100 Straight-line Ignoring income taxes, the annual net income amount used to calculate the accounting rate of return is: Multiple Choice $84 850 $13,350 $15.100 $47350 $49.100

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