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A company is considering purchasing a machine for $100,000. The machine will generate income of $4,600 per year. Annual depreciation expense would be $1,500. The
A company is considering purchasing a machine for $100,000. The machine will generate income of $4,600 per year. Annual depreciation expense would be $1,500. The machine has no salvage value. What is the accounting rate of return?
Multiple Choice
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9.2%
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12.2%
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6.2%
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6.1%
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4.6%
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