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Vaughan has the opportunity to invest in the following project. They use ARR to decide if they will accept a project - their minimum rate
Vaughan has the opportunity to invest in the following project. They use ARR to decide if they will accept a project - their minimum rate of return is 15%. They use the straight line method of deprecation for all long term assets such as this one. Initial Investment Salvage Value Useful Life Annual Net Income $150,000 $50,000 5 Years $24,000 What is the ARR and is this project acceptable? O A. 16%, Yes O B. 24%, Yes OC. 4%, No OD. 12%, No
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