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Business, 03.04.2020 16:38 anaiah13

Redwood Corporation is considering two alternative investment proposals with the following data: Proposal X Proposal Y Investment $ 880 comma 000 $ 469 comma 000 Useful life 10 years 10 years Estimated annual net cash inflows for 10 years $ 100 comma 000 $ 65 comma 000 Residual value $ 73 comma 000 $minus Depreciation method Straightminusline Straightminusline Required rate of return 15% 5% What is the accounting rate of return for Proposal X?

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