Compute the accounting rate of return


A new manufacturing machine is expected to cost $286,000, 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.

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Accounting Basics: Compute the accounting rate of return
Reference No:- TGS0678397

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