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A company is considering purchasing a machine that costs $200000 and is estimated to have no salvage value at the end of its B-year useful
A company is considering purchasing a machine that costs $200000 and is estimated to have no salvage value at the end of its B-year useful ife. If the machine s purchased, annual revenues are expected to be $80000 and annual operating expenses exclusive of deprediation expense are expected to be $38000. The straight-line method of depreciation would be used f the machine is purchased, the annual rate of return exxpected on this machine is 21.00% 8.50% 17.00% 42.00%
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