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Acompany is considering purchasing a machine that costs $328000 and is estimated to have no salvage value at the end of its 8 -year useful

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Acompany is considering purchasing a machine that costs $328000 and is estimated to have no salvage value at the end of its 8 -year useful life. If the machine is purchased, annual revenues are expected to be $90000 and annual operating expenses exclusive of depreciation expense are expected to be $38000. The straight-line method of depreciation would be used. If the machine is purchased, the annual rate of return expected on this machine is 6.71%.3.35%31.70%15.85%

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