15. A machine will cost 10,000. It is expected to provide profits before depreciation of 3,000 each...
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15. A machine will cost 10,000. It is expected to provide profits before depreciation of 3,000 each in years 1 and 2 and 4,000 each in years. 3 and 4. Assuming a straight-line depreciation and no taxes, what is the average accounting rate. of return? What will be your answer if the tax rate is 35 per cent?
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