Question: Hardware is adding a new product line that will require an investment of $ 1 comma 470 comma 000 $1,470,000. Managers estimate that this investment
Hardware is adding a new product line that will require an investment of
$ 1 comma 470 comma 000
$1,470,000. Managers estimate that this investment will have a 10-year life and generate net cash inflows of
$ 320 comma 000
$320,000 the first year,
$ 300 comma 000
$300,000 the second year, and
$ 235 comma 000
$235,000 each year thereafter for eight years. The investment has no residual value. Compute the ARR for the investment.
First, enter the formula, then compute the ARR of the new product line. (Enter your answer as a percent rounded to two decimal places.)
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