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A company bought a machine that has an expected life of 7 years and no salvage value. Management estimates that this machine will generate annual
A company bought a machine that has an expected life of 7 years and no salvage value. Management estimates that this machine will generate annual after-tax net income of $540. If the accounting rate of return is 12%, what was the purchase price of the machine? $9,000 $4,500 $2,250 $540 $31,500
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