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Bored at Home, Inc. is considering the purchase of a new machine with the following characteristics and benefits. Initial cost $110,000 Salvage value $10,000 Expected

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Bored at Home, Inc. is considering the purchase of a new machine with the following characteristics and benefits. Initial cost $110,000 Salvage value $10,000 Expected life 10 years increased annual cash flow annually $20,000 What is the accounting rate of return of the machine? 9.09%% 20% 18.18% 10% Bored at Home, Inc. is considering the purchase of a new machine with the following characteristics and benefits. Initial cost $110,000 Salvage value $10,000 Expected life 10 years Increased anthual cash flow annually $20,000 What is the simple rate of return of the machine? 9.09%% 20% 18.18% 10%

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