A project requires a $2,930,000 initial investment for new machinery with a five-year life and a salvage value of $326,000. The project is expected to yield annual income of $260,480 per year and net cash flows of $713,000 per year for the next five years. The project's accounting rate of return is: Multiple Choice O 24.9% 20.0% 48.1% 4.0%

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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A project requires a $2,930,000 initial investment for new machinery with a five-year life and a salvage value of $326,000. The
project is expected to yield annual income of $260,480 per year and net cash flows of $713,000 per year for the next five years.
The project's accounting rate of return is:
Multiple Choice
O
24.9%
20.0%
48.1%
4.0%
Transcribed Image Text:A project requires a $2,930,000 initial investment for new machinery with a five-year life and a salvage value of $326,000. The project is expected to yield annual income of $260,480 per year and net cash flows of $713,000 per year for the next five years. The project's accounting rate of return is: Multiple Choice O 24.9% 20.0% 48.1% 4.0%
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