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Two people have gotten this wrong so far on this site. Please make sure it's correct this time. Blossom Corp. management is considering purchasing a
Two people have gotten this wrong so far on this site. Please make sure it's correct this time.
Blossom Corp. management is considering purchasing a machine that will cost $117,250 and will be depreciated on a straight-line basis over a five-year period. The sales and expenses (excluding depreciation) for the next five years are shown in the following table. The company's tax rate is 34 percent. Year 4 Sales Year 1 $124,450 $140,410 Year 2 $174,875 $130,488 Year 3 $237,455 $137,289 $251,440 $140,112 Year 5 $263,125 $129,556 Expenses Blossom will accept all projects that provide an accounting rate of return (ARR) of at least 45 percent. (a1) Your answer is incorrect. Calculate accounting rate of return. (Round answer to 1 decimal place, e.g. 15.2%.) Accounting rate of return |% Save for Later Attempts: unlimited SubmitStep by Step Solution
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