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(LO 10) A company is planning to purchase a machine that will cost $24600 with a six-year life and no salvage value. The company expects
(LO 10) A company is planning to purchase a machine that will cost $24600 with a six-year life and no salvage value. The company expects to sell the machine's output of 3,000 units evenly throughout each year.A projected income statement for each year of the asset's life appears below. What is the accounting rate of return for this machine? 91,900 Sales Costs: Manufacturing Depreciation on machine Selling and administrative expenses Income before taxes Income tax (35%) Net income $52,180 4,100 31,900 (87,200) $ 3,800 (1,330) $ 2,470 Multiple Choice 33.33%. 20.08%. 10.04%. 410%
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