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Below Are Two Potential Investment Alternatives

Question 71

Multiple Choice

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 B is A) 38.67 percent. B) 2.59 percent. C) 5.33 percent. D) 2.40 percent. Assume straight-line amortization in all computations, and ignore income taxes.
-The accounting rate of return based on INITIAL investment in case B is


A) 38.67 percent.
B) 2.59 percent.
C) 5.33 percent.
D) 2.40 percent.

Correct Answer:

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