Question
Peng Company is considering buying a machine that will yield income of $2,500 and net cash flow of $17,400 per year for three years.
Peng Company is considering buying a machine that will yield income of $2,500 and net cash flow of $17,400 per year for three years. The machine costs $54,300 and has an estimated $9,600 salvage value. Compute the accounting rate of return for this investment. Numerator: Accounting Rate of Return Denominator: Accounting Rate of Return Accounting rate of return
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Financial and Managerial Accounting
Authors: Horngren, Harrison, Oliver
3rd Edition
978-0132497992, 132913771, 132497972, 132497999, 9780132913775, 978-0132497978
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