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A project will cost 40000 its stream of earning before

Question: A Project will cost $40000. Its stream of earning before depreciation and taxes (EBDIT) during first year through five years will be $10000,$12000,$14000,$16000 and $20000. Assume 50% tax and depreciation on straight line basis. What is the ARR.

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Finance Basics: A project will cost 40000 its stream of earning before

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