What is the accounting rate of return

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Problem - Mosaic Tile Company is considering an investment in new equipment costing $860,000. The equipment will be depreciated on a straight - line basis over a five - year life and is expected to have a residual value of $62,000. The equipment is expected to generate net cash inflows of $1,000,000 in total during the five - year life. What is the accounting rate of return associated with the equipment investment?

Reference no: EM133032241

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