What is the ARR for this investment

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Question - A Company is trading in a fully depreciated old asset for a new one. Cost of the new asset is (the first five digits of your student number) with a 5-year life and straight-line depreciation will be used. The company receives a $500 allowance for the asset traded in. Additional sales revenue from the investment will be $2,100 and expenses of $400 (excluding depreciation). The company is in a 25% tax bracket. What is the ARR for this investment?

Reference no: EM132865828

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