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The following information regarding a capital project was given for consideration: Estimated life 10 years Cost of capital 20% Initial investment P 6,500 Cash inflows
The following information regarding a capital project was given for consideration: Estimated life 10 years Cost of capital 20% Initial investment P 6,500 Cash inflows per year P 1,000 Straight-line depreciation P 325 What is the unadjusted accounting rate of return (ARR) of the capital project? 20.77% Cannot be determined from the given information 30.77% 15.38%
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