Question: could you please show the work!! Nelson Corp. is considering the purchase of a new piece of equipment. The cost savings from the equipment would
could you please show the work!!
Nelson Corp. is considering the purchase of a new piece of equipment. The cost savings from the equipment would result in an annual increase in cash flow of $168,625. The equipment will have an initial cost of $510,000 and have a 5 year life. If the salvage value of the equipment is estimated to be $145,000, what is the accounting rate of return? Ignore income taxes. Multiple Choice 18.75%. 33.06%. 16.25% 34.73%
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