Question: Big Restaurant is considering purchasing a chicken broaster. The broaster sells for $80,000 and is expected to result in annual net cash inflows of $25,000
Big Restaurant is considering purchasing a chicken broaster. The broaster sells for $80,000 and is expected to result in annual net cash inflows of $25,000 each yea for its 7-year useful life-without any residual value at the end of that life. What is the accounting rate of return (ARR) of the broaster, rounded to one decimal place? A.31.3% B. 33.9% C.35.1% D. None of the above
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