Super Apparel wants to replace an old machine with a new one. The old machine can be sold to a trader for $$20,000.$ The new machine would increase annual revenue by $$200,000$ and annual operating expenses by $$80,000.$ The new machine would cost $$400,000.$ The estimated useful life of the machine is $10$ years with zero salvage value.

i$.$ Compute Accounting Rate of Return $($ARR$)$ of the machine using above information.

ii$.$ Should Super Apparel purchase the machine if management wants an Accounting Rate of Return $($ARR$)$ of $19\%$ on all capital investments?

Hint: Use Average Income or Profit after deducting tax, depreciation, and operating expenses.