Business, 15.07.2021 16:20 AndiLizzi

A new manufacturing machine is expected to cost $278,000, have an eight-year life, and a $30,000 salvage value. The machine will yield an annual incremental after-tax income of $35,000 after deducting the straight-line depreciation. Compute the accounting rate of return for the investment. a. 22.7%. b. 23.4%. c. 46.9%. d. 12.2%.

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A new manufacturing machine is expected to cost $278,000, have an eight-year life, and a $30,000 sal...

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