Tetryl Company is considering a project with an initial investment of $200,000 in new equipment that will yield annual net cash flows of $48,000 and will depreciate at $24,000 per year over its eight year life.What is the accounting rate of return?
A) 37%
B) 25%
C) 12%
D) 19%
E) 54%
Correct Answer:
Verified
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