Question: Project A requires a $ 2 9 5 , 0 0 0 initial investment for new machinery with a five - year life and a

Project A requires a $295,000 initial investment for new machinery with a five-year life and a salvage value of $48,500. Project A is expected to yield annual income of $25,700 per year and net cash flow of $73,750 per year for the next five years.
Compute Project As accounting rate of return.

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