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The capital investment committee of Rigma Life Co. is currently considering purchasing a new hologram machine to create fictitious voters and has the following information:
The capital investment committee of Rigma Life Co. is currently considering purchasing a new hologram machine to create fictitious voters and has the following information:
Purchase price $240,000
Residual Value $40,000
Desired payback period 4 years
Minimum Rate of Return 15%
a. Compute the Accounting rate of return.
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