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Business, 05.05.2020 17:36 chelsilconway2262

Water World is considering purchasing a water park in Atlanta, Georgia, for $1,800,000. The new facility will generate annual net cash inflows of $457,000 for eight years. Engineers estimate that the new facilities will remain useful for eight years and have no residual value. The company uses straight-line depreciation, and its stockholders demand an annual return of 12% on investments of this nature.
Determine the formula and calculate the accounting rate of return (ARR). (Round the percentage to the nearest tenthpercent, X. X%.)

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Water World is considering purchasing a water park in Atlanta, Georgia, for $1,800,000. The new faci...
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