Accounting rate of return on the investment

Reference no: EM13152474

A company projects annual cash inflows of $85,000 each year for the next five years if it invests $300,000 in new equipment. The equipment has a five-year life and an estimated salvage value of $75,000. What is the accounting rate of return on this investment?

a) 28.3%

b) 13.3%

c) 15%

d) 43.3%

Reference no: EM13152474

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