Business, 15.12.2020 16:20 brianabrady06

The following relates to a proposed equipment purchase: Cost $161,000
Salvage value $7,000
Estimated useful life 4 years
Annual net cash flows $54,600

Depreciation method Straight-line Ignoring income taxes, the annual net income amount used to calculate the accounting rate of return is:

a. $54,600
b. $16,100
c. $17,850
d. $93,100
e. $52,850

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The following relates to a proposed equipment purchase: Cost $161,000
Salvage value $7,000 <...

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