Business, 06.12.2019 01:31 bloodgif3386

Landrum corporation is considering investing in specialized equipment costing $250,000. the equipment has a useful life of 5 years and a residual value of $20,000. depreciation is calculated using the straight-line method. the expected net cash inflows from the investment are:
year 1 $60,000
year 2 $90,000
year 3 $110,000
year 4 $40,000
year 5 $25,000
total cash inflows $325,000
landrum corporation's required rate of return on investments is 14%.what is the accounting rate of return on the investment?
a. 44.40%
b. 5.60%
c. 7.60%
d.18.40%

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