Question
A company buys a machine worth 100,000,000 which will have a life of 5 years. The machine has no salvage value. The machine will save
A company buys a machine worth 100,000,000 which will have a life of 5 years. The machine has no salvage value. The machine will save the company 40,000,000 per year and incur costs of 5,000,000 per year. What is the ARR (Accounting rate of return) value of the machine based on the average investment?
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Internal Auditing Assurance And Advisory Services
Authors: Kurt R. Reding, Paul J. Sobel, Urton L. Anderson, Michael J. Head, Sridhar Ramamoorti, Mark Salamasick, Cris Riddle
5th Edition
1634541367, 978-1634541367
