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taxis Industries is considering a project that would involve the purchase and refitting of a new manufacturing facility.The following information is known about this project: The initial cost of the purchase and refit of the facility is $300,000,000.There is expected to be no salvage value.
The facility can be depreciated using straight- line depreciation over a four- year life The current tax rate is 36%
A)What is the average accounting rate of return on the project?
B)Based upon this result should Tavis Industries accept this project?
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