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The Rapterzz Association is considering two independent projects. Each project costs $10,000. Project A produces cash inflows of $3,000 a year for four years. Project

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The Rapterzz Association is considering two independent projects. Each project costs $10,000. Project A produces cash inflows of $3,000 a year for four years. Project B produces no cash flows for the first two years and $6,000 a year for the following two years. The Rapterzz wants to recoup their money within 3 years. Should they accept these projects? They should accept Project A and reject Project B. They should reject both projects. They should accept both projects. They should reject Project A and accept Project B. They cannot make that decision based on the information provided. Andreescu's Tennis Camp Inc. just purchased $850,000 of new equipment. The equipment is expected to result in the following net income of the firm ($36,000), $39,000, $134,000, $164,000, and $39,000 a year in each of the next five years. Andreescu's uses straight-line depreciation over the projected life of the equipment. What is the average accounting rate of return on this equipment? 19.39% O 16.00% O 18.12% 32.00% 0 36.24%

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