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The Silverside Company is considering investing in two alternative projects. Project 1 $700,000 Project 2 $280,000 Investment Useful life (years) Estimated annual net cash inflows
The Silverside Company is considering investing in two alternative projects. Project 1 $700,000 Project 2 $280,000 Investment Useful life (years) Estimated annual net cash inflows for useful life Residual value Depreciation method Required rate of return $150,000 $35,000 Straight-line $70,000 $12,000 Straight-line 6% 14% What is the accounting rate of return for Project 1? O A. 7.86% O B. 35.00% OC. 16.43% OD. 21.43%
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