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%

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%

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter10: Capital Budgeting: Decision Criteria And Real Option

Section: Chapter Questions

Problem 21P

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