Multiple Choice
Dartis Company is considering investing in a specialized equipment costing $600,000. The equipment has a useful life of 5 years and a residual value of $60,000. Depreciation is calculated using the straight-line method. The expected net cash inflows from the investment are given below. 
What is the accounting rate of return on the investment?
A) 7.95%
B) 8.78%
C) 8.48%
D) 9.25%
Correct Answer:
Verified
Correct Answer:
Verified
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