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A company is planning to purchase a machine that will cost $32.400, will have a six-year Me, and will have no salvage value. The
A company is planning to purchase a machine that will cost $32.400, will have a six-year Me, and will have no salvage value. The company expects to sell the machine's output of 2.000 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? Sales Costs: Manufacturing Depreciation on machine Selling and administrative expenses Income $ 101,000 $ 50,800 5,400 41,000 (97,200) $3,800 Multiple Choice 8.21% 33.33% 540% 4 < Prev 14 of 16 Next >
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