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What is the average accounting rate of return

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Caldo Professional Movers is considering purchasing some new equipment costing $213,000. 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 $8,000, $20,000, $15,000, and $22,000. What is the average accounting rate of return (in percents)?

Reference no: EM132043611

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