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Dartis Tools Co

question 75

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Dartis Tools Co.is considering investing in a specialized equipment costing $600,000.The equipment has a useful life of 5 years and a residual value of $60,000.Depreciation is calculated using the straight-line method.The expected net cash inflows from the investment are given below: Dartis Tools Co.is considering investing in a specialized equipment costing $600,000.The equipment has a useful life of 5 years and a residual value of $60,000.Depreciation is calculated using the straight-line method.The expected net cash inflows from the investment are given below:   What is the accounting rate of return on the investment? A) 7.95% B) 8.78% C) 8.48% D) 9.25% What is the accounting rate of return on the investment?


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