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AAR Example You plan to buy a machine that will cost $18,000 today and produce the following net income: $500 in year 1, $750 in

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AAR Example You plan to buy a machine that will cost $18,000 today and produce the following net income: $500 in year 1, $750 in year 2, $300 in year 3, $1,000 in year 4, and $5,000 in year 5. The machine is worthless at the end of its 5 year life. Our firm only accepts projects with an average accounting return greater than 15%. Should you purchase the machine

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