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A company is planning to purchase a machine that will cost $33,000, have a six-year life, and be depreciated over a three-year period with no
A company is planning to purchase a machine that will cost $33,000, have a six-year life, and be depreciated over a three-year period with no salvage value. The company expects to sell the machine's output of 3,000 units evenly throughout each year. A projected income statement for each year of the asset's life appears below. What is the accounting rate of return for this machine? 50.00%. 56.36%. 112.73%. 5.50%. 33.33%
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