Equipment is purchased at a cost of 80000 as a result

Reference no: EM13592548

Equipment is purchased at a cost of $80,000. As a result, annual cash revenues will increase by $45,000; annual cash expenses will increase by $12,000; straight-line depreciation is used; the asset has a seven-year life; the salvage value is $10,000. Assume the company is in a 34% tax bracket.

Determine the accounting rate of return (round to the nearest %)

Reference no: EM13592548

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