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Peng Company is considering buying a machine that will yield income of $2,800 and net cash flow of $14,900 per year for three years. The
Peng Company is considering buying a machine that will yield income of $2,800 and net cash flow of $14,900 per year for three years. The machine costs $47,100 and has an estimated $10,800 salvage value. Compute the accounting rate of return for this investment.
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