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(Solved): Question Content Area Payback, Accounting Rate of Return, Net Present Value, Internal Rate of Retu ...



Question Content Area Payback, Accounting Rate of Return, Net Present Value, Internal Rate of Return Woodard Company wants to buy a numerically controlled (NC) machine to be used in producing specially machined parts for manufacturers of trenching machines. The outlay required is $800,000. The NC equipment will last five years with no expected salvage value. The expected after-tax cash flows associated with the project follow: Year Cash Revenues Cash Expenses1$1,600,000 $1,292,000 21,600,000 1,292,000 31,600,000 1,292,000 41,600,000 1,292,000 51,600,000 1,292,000 Required: Compute the NC equipment's ARR. Enter as a percent and round your answer to one decimal place. Accounting rate of return = fill in the blank 1 of 1 %



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