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

$1,454,000. Managers estimate that this investment will have a 10-year life and generate net cash inflows of

$300,000 the first year, $290,000 the second year, and $260,000 each year thereafter for eight years. Assume the project has no residual value. Compute the ARR for the investment. Round to two places.

Question content area bottom

Part 1

Select the formula, then enter the amounts to calculate the ARR (accounting rate of return) for the new product line. (Round ARR to the nearest hundredth percent [two decimal places], X.XX%.)

			=	ARR
			=		%