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Tiger Company is considering making a new product that requires an initial investment in a piece of equipment of $500,000. The equipment has a useful
Tiger Company is considering making a new product that requires an initial investment in a piece of equipment of $500,000.
The equipment has a useful life of three years and a residual value of $10,000.
Depreciation is calculated using the straightline method. The expected net cash inflows are expected to be $220,000 per year. What is the ARR of the investment?
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