Sayer Tool Co. is considering investing in specialized equipment costing $690,000. The equipment has a...
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Sayer Tool Co. is considering investing in specialized equipment costing $690,000. The equipment has a useful life of five years and a residual value of $68,000. Depreciation is calculated using the straight-line method. The expected net cash inflows from the investment are given below: $203,000 154,000 167,000 105,000 91,000 $720,000 Year 1 4 What is the accounting rate of return on the investment? (Round your answer to two decimal places.) OA. OB. C) C. OD, 5.68% 5.17% 2.59% 6.30%
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