Sikes Hardware is adding a new product line that will require an investment of $1,454,000. Managers estimate that this i

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answerhappygod
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Sikes Hardware is adding a new product line that will require an investment of $1,454,000. Managers estimate that this i

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Sikes Hardware is adding a new product line that will require an
investment of $1,454,000. Managers estimate that this investment
will have a​ 10-year life and generate net cash inflows of $320,000
the first​ year, $280,000 the second​ year, and $250,000 each year
thereafter for eight years. Assume the project has no residual
value. Compute the ARR for the investment. Round to two places.
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