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Omega Company is evaluating the purchase of a machine costing $400,000. The expected useful life of the machine is five years, at the end of
Omega Company is evaluating the purchase of a machine costing $400,000. The expected useful life of the machine is five years, at the end of which it would have no residual value, and the depreciation is assumed to be on a straight-line basis. The estimated total income from the machine is $500,000. The expected average rate of return for this machine is _____. a. 42.6% b. 50.0% c. 26.4% d. 57.1%
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