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Carmel corporation is considering the purchase of a machine costingg $41,000 with a 8-year useful life and no salvage value. carmel uses straight-line depreciation and
Carmel corporation is considering the purchase of a machine costingg $41,000 with a 8-year useful life and no salvage value. carmel uses straight-line depreciation and assume that the annual cash inflow from the machine will be received uniformly throughout each year. In calculating the accounting rate of return, what is Carmel's average investment? A. $41,000 B. $23,063. C. $20,500 D. $5,766 18) The following data concerns a Proposed equipment Purchase: The annual average investment amount used to calculate the accounting rate of return is: A. $81,500 B. $79,000 C. $40,750 D. $84,000
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