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Assume a machine that has a useful life of only one year costs $2,000. Assume, also, that net of such operating costs as power, taxes,

Assume a machine that has a useful life of only one year costs $2,000. Assume, also, that net of such operating costs as power, taxes, and so forth, the additional revenue from the output of this machine is expected to be $2,800. The expected rate of return on this machine is

  • 40 percent.
  • 80 percent.
  • 30 percent.
  • 7 percent.

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