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Peng Company is considering buying a machine that will yield income of $2,700 and net cash flow of $18,300 per year for three years.

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Peng Company is considering buying a machine that will yield income of $2,700 and net cash flow of $18,300 per year for three years. The machine costs $56,100 and has an estimated $9,300 salvage value. Compute the accounting rate of return for this investment. Numerator: Accounting Rate of Return Denominator: Accounting Rate of Return Accounting rate of retum 0

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