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Watson Corporation is considering buying a machine for $40,000. Its estimated useful life is 5 years, with no salvage value Watson anticipates annual net income
Watson Corporation is considering buying a machine for $40,000. Its estimated useful life is 5 years, with no salvage value Watson anticipates annual net income after taxes of $2,700 from the new machine. What is the accounting rate of return assuming that Watson uses straight-line depreciation and that income is earned uniformly throughout each year? 1.53 points Multiple Choice 00:45:20 6.8%. 8 4%. 11.3%
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