Computing the rate of return on initial investment. The Harley Corporation uses the straight-line method for computing

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Computing the rate of return on initial investment. The Harley Corporation uses the straight-line method for computing depreciation. What is the anticipated rate of return on the initial investment in the machine?The Harley Corporation is considering the purchase of a machine at a cost of

$64,000. The machine has an estimated useful life of 10 years and no salvage value.

It is anticipated that the machine will result in annual cash savings of $16,000.

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