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One of the companies decided to buy a machine costing 185000 dinars, and estimated annual revenue before taxes and depreciation 44000 dinars during the next
One of the companies decided to buy a machine costing 185000 dinars, and estimated annual revenue before taxes and depreciation 44000 dinars during the next 5 years and has value at the end of the useful life (scrap ) 5000 company uses the straight - line method to calculate depreciation and income tax rate 40%. Required il : Evaluation this investment under the revenue accounting and the accounting rate of return AIRR ? AIRR = 5.333% 2.594% 2.666% Evaluation this investment under the revenue accounting and the accounting rate of return AARR? AARR 5.052 % 5.333 % 2.666%
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