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Question 21 4 pt The management of Tony Corporation is considering the purchase of a new machine costing $400,000. No residual value is expected. The

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Question 21 4 pt The management of Tony Corporation is considering the purchase of a new machine costing $400,000. No residual value is expected. The company's desired rate of return is 10%. The present value factors for $1 at compound interest of 10% for 1 through 5 years are 0.909, 0.826, 0.751, 0.683, and 0.621, respectively. In addition to the foregoing information the following data is available. Income from Operations Year Net Cash 1 2 Flow $180,000 120,000 100,000 90,000 90,000 $100,000 40,000 20,000 10,000 10,000 3 4 5 The accounting rate of return for this investment is: 16% 18% 10% 58%

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