E12-20A (similar to)

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Hardware is adding a new product line that will require an investment of

$1,450,000.

Managers estimate that this investment will have a 10-year life and generate net cash inflows of

$ 325 comma 000$325,000

the first year,

$285,000

the second year, and

$235,000

each year thereafter for eight years. The investment has no residual value. Compute the ARR for the investment.