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Community Hospital is purchasing a new ambulance. The ambulance will cost $100,000, which will be...

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Accounting

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Community Hospital is purchasing a new ambulance. The ambulance will cost $100,000, which will be depreciated at $20,000 per year for five years. Related cash inflows from reimbursements are projected to be $45,000 annually. The hospital expects to replace the vehicle when it is fully depreciated. How much is the accounting rate of return on this investment? 20% 25% 45% 100% o

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