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Below Are Two Potential Investment Alternatives

Question 56

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Below are two potential investment alternatives:
Below are two potential investment alternatives:    Assume straight-line amortization in all computations, and ignore income taxes. -The accounting rate of return based on INITIAL investment in case X is A)  41.67 percent. B)  8.33 percent. C)  16.67 percent. D)  33.33 percent. Assume straight-line amortization in all computations, and ignore income taxes.
-The accounting rate of return based on INITIAL investment in case X is


A) 41.67 percent.
B) 8.33 percent.
C) 16.67 percent.
D) 33.33 percent.

Correct Answer:

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