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The following relates to a proposed equipment purchase: Initial investment $ 164,000 Salvage value $ 8,500 Estimated useful life 4 years Annual net cash flows
The following relates to a proposed equipment purchase: Initial investment $ 164,000 Salvage value $ 8,500 Estimated useful life 4 years Annual net cash flows $ 56,100 Annual depreciation expense $ 38,875 The annual income amount used to calculate the accounting rate of return is: Multiple Choice $56,100 $17,225 $19,350 $94,975 $53,975
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