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What is the accounting rate of return on the equipment

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Reference no: EM132810178

Problem 1: Kaylin Company purchased a piece of equipment for £100,000 that had a useful life of 5 years. The equipment had no salvage value. It saves the company £40,000 a year and costs the company £5,000 a year to operate. What is the accounting rate of return on the equipment?

Reference no: EM132810178

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