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You are planning to buy a new machine for $1 Jooo. The machine will generate net cash flows of $250 a year for 10 years.

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You are planning to buy a new machine for $1 Jooo. The machine will generate net cash flows of $250 a year for 10 years. The salvage value after 10 years is zero. Compute ARR (accounting rate of return). 25% 30% not enough information - need to know accounting income and accounting depreciation 50% 15%

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