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Your company is planning to purchase new equipment for its landscaping business. The new equipment...

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Accounting

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Your company is planning to purchase new equipment for its landscaping business. The new equipment has an initial investment cost of $190,000. It is expected to generate $25,000 of annual cash inflows, provide incremental revenues of $145,000, and incur incremental expenses of $100,000 annually. Calculate the payback period and accounting rate of return for this investment. Round answers to one decimal place Payback period: years Accounting rate of return: 96

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