Directors of Holland Lid are considering the purchase of a new machine The machine will cost $210 000 There will be net cash inflows in each of the three years of: Year 1: $80 000, Year 2: $90 000 and Year :3 $69 000 The machine is thought to have a residual value of $40 000 at the end of year 3 The required rate of return (RRR) is 12% Discount Rate (r) Period 6% 8% 10% 12% 14% 16% 18% 20% 0 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 0.943 0.926 0.909 0.893 0.877 0.862 0.847 0.833 0.890 0.857 0.826 0.797 0.769 0.743 0.718 0.694 3 0.840 0.794 0.751 0.712 0.675 0.641 0.609 0.579 4 0.792 0.735 0.683 0.636 0.592 0.562 0.516 0.482Calculate the Accounting Rate of Return (ARR) Show each of the 5 steps of your calculations and state the decision rule. - Decision rule