Waggoner Cabins expects to see an increase in operating income over the next five years based on an initial investment of $85,000. Waggoner estimates that year one operating income will increase by $10,000, years 2 and 3 by $15,000, and years 4 and 5 by $20,000. The rate of return is estimated to be 8%, and the tax rate is 21%. What is the ARR of this investment, and should the company proceed with the investment? (round to the nearest 2 decimals)

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The Answer of Waggoner Cabins expects to see an increase in operating income over the next five years based on an initial investment of $85,000. Waggoner estimates that year one operating income will increase by $10,000, years 2 and 3 by $15,000, and years 4 and 5 by $20,000. The rate of return is estimated to be 8%, and the tax rate is 21%. What is the ARR of this investment, and should the company proceed with the investment? (round to the nearest 2 decimals)

Waggoner Cabins Expects to See an Increase in Operating Income