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How do solve the accounting rate of return

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Reference no: EM132696813

Using the following data:

Estimated life5 years

Estimated residual value ($)40000

Annual net cashflow ($)60000

Project Cost ($)200000

Required rate of return12%

Problem 1: Calculate the:

accounting rate of return
payback period
internal rate of return
net present value

Problem 2: Critically discuss the advantages and disadvantages associated with the use each of these techniques in capital budgeting decisions

Reference no: EM132696813

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