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Use the following information for 18-20. The Broken Egg is considering a project that will produce sales of $87,000 a year for the next 4
Use the following information for 18-20. The Broken Egg is considering a project that will produce sales of $87,000 a year for the next 4 years. The profit margin is estimated at 6 percent. The project will cost $90,000 and will be depreciated straight-line to a book value of zero over the life of the project. What is the AAR of this project? Using a required AAR of 11 percent, should Broken Egg invest in this project? (Please round to three decimal places). Show work here
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