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Using the Information in the Table Below,calculate the ARR A) 15%
B) 16

Question 31

Multiple Choice

Using the information in the table below,calculate the ARR.

Average profit before depreciation$75000 Annual depreciation $15000Period of investment4 yearsInitial investment $800000Value at end of the investment period$100000\begin{array}{|l|r|}\hline \text {Average profit before depreciation} &\$ 75000 \\\hline\text { Annual depreciation }& \$ 15000 \\\hline \text {Period of investment} & \text {4 years} \\\hline \text {Initial investment }&\$ 800000 \\\hline \text {Value at end of the investment period} & \$ 100000 \\\hline\end{array}


A) 15%
B) 16.67%
C) 13.33%
D) 18.75%

Correct Answer:

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