Nylan Tiles Company is considering an investment in new equipment costing $850,000. The equipment will...
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Accounting
Nylan Tiles Company is considering an investment in new equipment costing $850,000. The equipment will be depreciated on a straight line basis over 5 year life and is expected to have a salvage value of $50,000. The equipment is expected to generate net cash inflows of $1,000,000 in total during the 5 year life. What is the account rate of return associated with the equipment investment?
A)8.89%
B)9.32%
C)7.56%
D) 9.99%
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