The following data concerns a proposed equipment purchase: Cost $144,000 Salvage value $4,000 Estimated useful life 4 years Annual net cash flows $46,100 Depreciation method Straight-line Assuming that net cash flows are received evenly throughout the year, the accounting rate of return is:
a. 7.7%.
b. 15.0%.
c. 5.0%.
d. 62.3%.
e. 32.0%.
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