CALCUALTE:
1.CASH FLOWS FOR EACH YEAR
2. THE ACCOUNTING RATE OF RETURN
The following information on the equipment is available on the market: Cost of machine R 50 000 Live span of machine 5 years Residual value Nil Depreciation straight-line method Cost of capital 12% Expected annual profits after tax:
Year
Amount
1
R 7 500
2
R 6 000
3
R 5 000
4
R 3 500
5
R 3 000

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