What the annual net income amount used

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Reference no: EM132953876

The following relates to a proposed equipment purchase:

Cost $156,000

Salvage value $4,500

Estimated useful life 4years

Annual net cash flows $52,100

Depreciation method Straight-line

Problem 1: Ignoring income taxes, the annual net income amount used to calculate the accounting rate of return is:

Reference no: EM132953876

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