Considering purchasing some new equipment costing

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Delta Mu Delta is considering purchasing some new equipment costing $400,000. The equipment will be depreciated on a straight-line basis to a zero book value over the four-year life of the project. Projected net income for the four years is $18,900, $29,320, $26,700, and $25,000. What is the average accounting rate of return? 13.20 percent 12.49 percent 11.63 percent 12.01 percent 11.49 percent

Reference no: EM131188256

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