Ivanhoe Corp. management is expecting a project to generate after-tax income of $76,940 in each of the next three years.

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answerhappygod
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Ivanhoe Corp. management is expecting a project to generate after-tax income of $76,940 in each of the next three years.

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Ivanhoe Corp. management is expecting a project to generateafter-tax income of $76,940 in each of the next three years.The average book value of the project’s equipment over that periodwill be $181,560. If the firm’s investment decision on any projectis based on an ARR of 37.5 percent. (Round answerto 1 decimal place, e.g. 5.2%.)What is the project’s accounting rate of return?
Should the firm accept this project?
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