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Your company just purchased an asset for $22,000. The asset has a life of three years. The accounting department reports that the asset needs to
Your company just purchased an asset for $22,000. The asset has a life of three years. The accounting department reports that the asset needs to be depreciated by $6,000 a year. The asset is expected to generate net income as follows:
Year 1 | Year 2 | Year 3 |
$2,000 | $4,000 | $3,000 |
Calculate the average accounting return of this asset. (Round off your answer to two decimal places. Express your answer as a number rather than a % value. If your answer is 12%, type 0.12)
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