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Question
flint company expects income of $3,000 per year over the life of an investment that will cost $25,000. the calculation of the accounting rate of return is .16 . the rate of return indicates that
a.flint expects to earn 16% of $3,000 as profit each year the asset is used
b.flint expects to earn 16% of its investment annually
c.flint expects to earn 16% of its cash outlay back over the life of the asset
d.flint expects the asset will earn 16 times as much profit as its cost
Answer
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