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Wildhorse Company is considering a purchase of equipment that costs $85400. The equipment has a 8-year life and no salvage value. Wildhorse uses straight-line depreciation.

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Wildhorse Company is considering a purchase of equipment that costs $85400. The equipment has a 8-year life and no salvage value. Wildhorse uses straight-line depreciation. The equipment has a payback period of 4 years. The accounting rate of return is closest to 3.1% @ 37.5%. 0 12.5% O 25.0%

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