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Spacely Sprockets Inc is a new start-up evaluating a new project. They worry that they dont have all the requisite operating

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Answer #1

ARR= Average Net Income / Average Investment

ARR = 53333/ 607333 = 8.78%

Average net Income = 81000+37000+42000 / 3 = 53333

Average Investment = 545000+657000+ 620000 / 3 = 607333

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