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The following information applies to the questions displayed below Falcon Crest Aces (FCA), Inc., is considering the purchase of a small plane to use in
The following information applies to the questions displayed below Falcon Crest Aces (FCA), Inc., is considering the purchase of a small plane to use in its wing-walking demonstrations and aerial tour business. Various information about the proposed investment follows $ 290,000 Initial Investment Useful Iife Salvage value Annual net Income generated FCA's cost of capltal 10 years 25,000 6,400 9% Assume straight line depreciation method is used. Required Information 0.50 points Required: Help FCA evaluate this project by calculating each of the following: .Accounting rate of return. (Round your answer to 2 decimal places.) Accounting Rate of Return
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