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Onxy Onxy
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7 years ago
The manager at Northern Neck Manufacturing reported a need to purchase a new machine to clean and process fresh shrimp. In its simple form, the average investment is calculated as the arithmetic mean of the net initial investment at $650,000 and a net terminal cash flow of $24,000. The managerial accountant reports that the net terminal value of the new machine is $0, plus the net terminal amount of working capital is $24,000. The increase in expected annual after-tax income is expected at $34,000.
Required
Compute the average investment over 5 years. Compute the AARR on average investment.
Textbook 
Managerial Accounting: Decision Making and Motivating Performance

Managerial Accounting: Decision Making and Motivating Performance


Edition: 1st
Authors:
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noitulovenoitulove
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7 years ago
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Onxy Author
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6 years ago
This subject killed me, thanks you for sharing your expertise
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