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The Silverside Company is considering investing in two alternative projects: Project 1 $700,000 Project 2 $260,000 Investment Useful life (years) Estimated annual net cash inflows

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The Silverside Company is considering investing in two alternative projects: Project 1 $700,000 Project 2 $260,000 Investment Useful life (years) Estimated annual net cash inflows for useful life Residual value Depreciation method Required rate of retum What is the accounting rate of return for Project 1? $150,000 $35,000 Straight - line 8% $60,000 $ 16,000 Straight-line 9% O A. 16.43% OB. 21.43% OC. 35.00% OD. 7_86%

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