Question: PLEASE SHOW YOUR WORK Peet's Corp is considering the purchase of a new piece of equipment. The cost savings from the equipment would result in

PLEASE SHOW YOUR WORK Peet's Corp is considering the purchase of

PLEASE SHOW YOUR WORK

Peet's 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 $100,000. The equipment will have an initial cost of $400,000 and have a 5 year life. If the salvage value of the equipment is estimated to be $75,000, what is the accounting rate of return? Ignore income taxes

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