[taurusrichkid]

Able Ltd is considering a new project for which the following information is available:
Initial cost – $300,000
Expected lite – 5 years
Estimated scrap value – $20,000
Addition revenue from the project – $120,000
per year
Incremental costs of the project – $30,000 per
yadi
Cost of capital – 10%

Calculate the Accounting Rate of Return of the project (to the nearest %).

[Author]

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