Um Good, Inc., a candy maker, is thinking of purchasing a new machine. A mar keting firm

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Um Good, Inc., a candy maker, is thinking of purchasing a new machine. A mar keting firm has estimated that the new machine could increase revenues by $\$ 30) .(\times 6)$ a year for the next 5 years. The expenses directly relating to the machine total $\$ 60,000$ ( $\$ 12,000 \times 5$ years). The initial purchase cost would be $\$ 80,(0)(0)$. What is the unadjusted rate of return?

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Survey Of Accounting

ISBN: 9780538846172

1st Edition

Authors: James D. Stice, W. Steve Albrecht, Earl Kay Stice, K. Fred Skousen

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