Clapton Corporation is considering an investment in new equipment costing $906,000.The equipment will be depreciated on a

Question:

Clapton is considering an investment in new equipment costing $906,000.The equipment will be depreciated on a straight−line basis over a ten−year life and is expected to have a residual value of $96,000. The equipment is expected to generate net cash flows of $150,000 for each of the first five years and $126,000 for each of the last five years. What is the accounting rate of return associated with the equipment investment? (Round your answer to two decimal places.)
A.12.16%
B.8.99%
C.12.60%
D.11.38%
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...