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Blue Marlin Company is considering the purchase of new equipment for its factory. It will cost $242,000 and have a $48,400 salvage value in five

Blue Marlin Company is considering the purchase of new equipment for its factory. It will cost $242,000 and have a $48,400 salvage value in five years. The annual net income from the equipment is expected to be $26,620, and depreciation is $38,720 per year.

Calculate Blue Marlins accounting rate of return and payback period for the equipment.

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