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Rainbow Painting Company is considering whether to purchase a new spray paint machine that costs $8,000. The machine is expected reduce labor costs by $1,600

Rainbow Painting Company is considering whether to purchase a new spray paint machine that costs $8,000. The machine is expected reduce labor costs by $1,600 per year. The machine is expected to have a useful life of 10 years. The unadjusted rate of return for this investment is

a. 16 %

b. 20 %

c. 40 %

d. some other amount

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