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Capitol corp management is expecting a project to generate

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Capitol Corp. management is expecting a project to generate after-tax income of $66,901 in each of the next three years. The average book value of the project's equipment over that period will be $199,826. If the firm's acceptance decision on any project is based on an ARR of 37.5 percent. (Round answer to 2 decimal places, e.g. 5.25%.) What is the project's accounting rate of return? Accounting rate of return is % Should the firm accept this project? The firm should the project.

Reference no: EM13611814

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