Question: (d) Company A is considering a project which has an initial investment of $280,000. The project is expected to generate annual cash inflow of $50,000

(d) Company A is considering a project which has an initial

(d) Company A is considering a project which has an initial investment of $280,000. The project is expected to generate annual cash inflow of $50,000 for 6 years. Depreciation is allowed on the straight line basis. It is estimated that the project will generate scrap value of $17,500 at end of the 6th year. Calculate its accounting rate of return assuming that there are no other expenses on the project

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