Condore & Company is contemplating the purchase of a machine that would cost ($142,790). The machine would

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Condore & Company is contemplating the purchase of a machine that would cost \($142,790\). The machine would provide an annual contribution margin of \($47,262.55\) each year. The proposed new machine has an estimated useful life of five years and an estimated residual value of $10,000.

Required: Determine the accounting rate of return for Condore & Company’s investment in the new machine.

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