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1. Turner Printing is looking to invest in a printer, which costs a $100,000. Turner expects a 20% rate of return on this printer investment.

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1. Turner Printing is looking to invest in a printer, which costs a $100,000. Turner expects a 20% rate of return on this printer investment. The company expects incremental revenues of $50,000 and incremental expenses of $10,000. There is no salvage value for the printer. What is the accounting rate of return (ARR) for this printer? 2. Rudolph Incorporated is considering the X-ray machine that had present value cash flows of $350,000 and an initial investment cost of $300,000. Another X-ray equipment option, Option B, produces present value cash flows of $400,000 and an initial investment cost of $200,000. What is the profitability index of Option B

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