A machine costs ($8,000) and is expected to produce profit before depreciation of ($2,500) in each of

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A machine costs $$8,000$ and is expected to produce profit before depreciation of $$2,500$ in each of Years 1 and 2 and $$3,500$ in each of Years 3 and 4.

Assuming that the machine is depreciated at a constant rate of $$2,000$ a year and that there are no taxes, what is the average return on book?

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Fundamentals Of Corporate Finance

ISBN: 9780072416275

3rd Edition

Authors: Richard A. Brealey

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Question Posted: Jun 05, 2024 01:04 AM

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A machine costs ($8,000) and is expected to produce profit before depreciation of ($2,500) in each of

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Fundamentals Of Corporate Finance

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