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How do i find the accounting rate of return? Columber Corp, management is considering purchasing a machine that will cost $117.250 and will be depreciated
How do i find the accounting rate of return?
Columber Corp, management is considering purchasing a machine that will cost $117.250 and will be depreciated on a straight-line basis over a five-year period. The sales and expenses (excluding depreciation) for the next five years are shown in the following table. The company's tax rate is 34 percent. Year 1 Year 2 Year 3 Year 4 Year 5 Sales $128.450 $172.875 $248,455 $252.440 $262.125 Expenses $137.410 $130 488 $139.289 $142,112 $134556 Cullumber will acceptall projects that provide an accounting rate of return (ARR) of at least 45 percent (at) Your answer is incorrect Calculate accounting rate of return. [Round answer to 1 decimal place, e. 15.2%) Accounting rate of return Step by Step Solution
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