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1) A new machine that costs $350,000 and has a useful life of seven years is expected to yield a cash flow or $85,000

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1) A new machine that costs $350,000 and has a useful life of seven years is expected to yield a cash flow or $85,000 each end of the year. The machine is expected to have zero salvage value. What is the average accounting rate of return (before taxes) a) 20% b) 24.3% c) 48.6 d) 58.8% e) none of the above is correct

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