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A manufacturing company purchased a new machine for $ 1 5 0 , 0 0 0 . The machine will last ten years and will

A manufacturing company purchased a new machine for $

150, 000 .

The machine will last ten years and will be depreciated using the straight

-

line method. The estimated salvage value of the machine is zero and should generate a yearly cash inflow of $

39, 000 .

Requirement: What is the accounting

/

average rate of return?

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