Jackson Corporation had a project with a projected $35,000 NPV. The total operating expenses were...

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Accounting

Jackson Corporation had a project with a projected $35,000 NPV. The total operating expenses were $1,060,000 for the year just ended. Included in the operating expenses was $80,000 of depreciation expense and the cash flows $120,000 and net income of $200,000. If the companys tax rate was 30% and they were considering investing $500,000 in equipment that has a $20,000 residual value, how much is the projects ARR?

16.67%

76.92%

Some other answer

46.15%

41.67%

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