The Silverside Company is considering investing in two alternative projects: Project 1 $400,000 Project 2...
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Accounting
The Silverside Company is considering investing in two alternative projects: Project 1 $400,000 Project 2 $260,000 Investment Useful life (years) 8 $65,000 $16,000 Straight - line $120,000 Estimated annual net cash inflows for useful life Residual value $25,000 Straight line Depreciation method Required rate of return 12% 10% What is the accounting rate of return for Project 1? O A. 11.25% O B. 23.75% O C. 30.00% O D. 48.75%
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