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The following data relate to a companys decision on whether to purchase a machine: Cost $180,000 Salvage value 15,000 Annual after-tax net income 40,000 Assume

The following data relate to a companys decision on whether to purchase a machine:

Cost

$180,000

Salvage value

15,000

Annual after-tax net income

40,000

Assume net cash flows occur uniformly over each year and the company uses straight-line

depreciation. What is the machine's accounting rate of return?

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