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b) The H&M Company is considering purchasing a new machine that would increase the speed of production. The net cost of this machine is RM100,000.

b) The H&M Company is considering purchasing a new machine that would increase the speed of production. The net cost of this machine is RM100,000. The scrap value of investment is RM0. The cash flow for the 5 years is RM25,000, RM30,000, RM25,000, RM20,000 and RM5,000. Based on information given, compute the accounting rate of return (ARR) for H&M company.

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