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2 Watrous Company calculated the net present value on a new machine to be $71,543. The new machine would cost $95,000 and would have a
2 Watrous Company calculated the net present value on a new machine to be $71,543. The new machine would cost $95,000 and would have a salvage value of $9,800 at the end of its 10-year life. The old machine currently in use can be sold for $3,000 if the new machine is purchased. Assume Watrous Company has a 10% cost of capital. Calculate the accounting rate of return on the new machine. In entering your answer in carmen, enter your answer as a number. For example, if your answer is 15% simply enter 15. Do not enter your answer as a decimal (i.e., .15) or put the percentage symbol after your answer. Quiz scores will not be adjusted for failure to follow these directions. 6 pts
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