Roberts

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

$1,418,000.

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

$300,000

the first year,

$280,000

the second year, and

$250,000

each year thereafter for eight years. Assume the project has no residual value. Compute the ARR for the investment. Round to two places.

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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
			=		%