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Business, 17.06.2021 22:00 Unstinct

ABC Company is considering investing in new production equipment at a cost of $60,000 with a 10-year useful life and no salvage value. The following are estimated for Year 1 of the project: Sales = $100,000 Production costs = $82,600 Depreciation expense = $6,000

Calculate the following for ABC Company for Year 1:
a. Operating income =
b. Average investment =
c. Accounting rate of return =

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