Multiple Choice
Henkle Company is considering a project with an initial investment of $626,500 in new equipment that will yield annual net cash flows of $90,000 and will be depreciated at $55,000 per year over its nine-year life. What is the accounting rate of return on the investment?
A) 5.59%
B) 18.74%
C) 31.27%
D) 50.0%
Correct Answer:
Verified
Correct Answer:
Verified
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