Peng Company is considering buying a machine that will yield income of $2,900 and net cash flow of $19,400 per year for three years. The machine costs $56,100 and has an estimated $6,600 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

Peng Company is considering buying a machine that will yleid income of $2,900 and net cash flow of $19,400 per year for three years The machine costs $56,100 and has an estimated $6,600 salvage value. Compute the accounting rate of return for this investment