Question: A three year project is expected to generate an ARR of 20% provided an asset worth $100 000 is purchased initially and is subsequently written

A three year project is expected to generate an ARR of 20% provided an asset worth $100 000 is purchased initially and is subsequently written off using straight line depreciation over the life of the project with no salvage value expected at the end of the project. Net profits are expected to be equal for the next three years. Calculate the net profit for the year?

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