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The following relates to a proposed equipment purchase: Cost Salvage value Estimated useful life Annual net cash flows Depreciation method $152,000 s 8,000 4 years

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The following relates to a proposed equipment purchase: Cost Salvage value Estimated useful life Annual net cash flows Depreciation method $152,000 s 8,000 4 years $ 50, 100 Straight-line Ignoring income taxes, what is the annual net income that should be used to calculate the accounting rate of return? Multiple Choice $86.100 $50,100

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