RWJ 7th Edition Solutions
This text computes AAR as average net income with respect to average (total) book value. ... 300K 1 1,251,000 2 1,251,000 3 1,687,500 = $1,251,000 + 300,000 + 210,000 + (0 – 210,000)(.35) And the NPV of the project is: ... The costs are positive in this case since the new computer will generate a cost savings. The only initial cash flow for ... ................
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