Beacon Company is considering automating its production facility. The initial investment in automation would be...
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Accounting
Beacon Company is considering automating its production facility. The initial investment in automation would be $ million, and the equipment has a useful life of years with a residual value of $ The company will use straightline depreciation. Beacon could expect a production increase of units per year and a reduction of percent in the labor cost per unit.
Required:
Determine the project's accounting rate of return.
Note: Round your answer to decimal places.
Accounting rate of return
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