Question
#4 Peng Company is considering buying a machine that will yield income of $2,700 and net cash flow of $16,400 per year for three years.
#4
Peng Company is considering buying a machine that will yield income of $2,700 and net cash flow of $16,400 per year for three years. The machine costs $50,100 and has an estimated $9,000 salvage value. Compute the accounting rate of return for this investment.
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Financial Accounting an introduction to concepts, methods and uses
Authors: Clyde P. Stickney, Roman L. Weil, Katherine Schipper, Jennifer Francis
13th Edition
978-0538776080, 324651147, 538776080, 9780324651140, 978-0324789003
