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A machine costs $700,000 and is expected to yield an after-tax net income of $30,000 each year. Management predicts this machine has a 9-year service
A machine costs $700,000 and is expected to yield an after-tax net income of $30,000 each year. Management predicts this machine has a 9-year service life and a $140,000 salvage value, and it uses straight-line depreciation. Compute this machines accounting rate of return.
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