really should be the answer. hope this helps
It’s restrain your opinion about the topic
Based on the projected net incomes and cost of purchasing the equipment, the average accounting rate of return is 12.5%.
<h3>How can we find the average accounting rate of return?</h3>
This can be found as:
= Average cashflows / Average investment
Average cashflows are:
= (7,200 + 11,300 + 14,100 + 20,000) / 4
= $13,150
Average investment is:
= 210,000 / 2
= $105,000
The average accounting rate of return is:
= 13,150 / 105,000
= 12.5%
The new equipment should not be bought if the required AAR is 12% because it would be less than the AARR.
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Tevye's analogy is faulty in this situation because "Tevye's analogy is supporting the idea of marrying only Jews; however, it does not explain
the reason why this is supposed to happen".
<h3>How Tevye's analogy is different</h3>
Tevye's analogy is faulty in this situation because it doesn't give reasons to why one is supposed to "seek his own kind".
It is good to seek one's own kind so as to avoid the cultural problem in marriage. It helps to solve the problem of origin differences.
Culture is very important in any relationship. In order not to have different perspectives on an issue, it is ideal to go into relationships with people of the same culture.
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