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Compute project a accounting rate of return

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Reference no: EM132953177

Problem - Project A requires a $385,000 initial investment for new machinery with a five-year life and a salvage value of $48,500. The company uses straight-line depreciation. Project A is expected to yield annual net income of $20,500 per year for the next five years. Compute Project A's accounting rate of return.

Reference no: EM132953177

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