What is the projects accounting rate of return

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Capitol Corp. management is expecting a project to generate after-tax income of $62,680 in each of the next three years. The average book value of the project’s equipment over that period will be $185,280. If the firm’s investment decision on any project is based on an ARR of 37.5 percent. (Round answer to 1 decimal places, e.g. 5.2%.)

What is the projects accounting rate of return?

Reference no: EM131318985

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