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The following relates to a proposed equipment purchase: Cost Salvage value Estimated useful life Annual net cash flows Depreciation method $ 148,000 $ 6,000 4

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The following relates to a proposed equipment purchase: Cost Salvage value Estimated useful life Annual net cash flows Depreciation method $ 148,000 $ 6,000 4 years $ 48,100 Straight-line Ignoring income taxes, the annual net income amount used to calculate the accounting rate of return is: Multiple Choice $46,600 $12,600 $14,100 $48,100 $83,600

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