Machine accounting rate of return


A machine costs $500,000 and is expected to yield an after-tax net income of $19,000 each year. Management predicts this machine has a 9-year service life and a $100,000 salvage value, and it uses straight-line depreciation. Compute this machine's accounting rate of return.

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Accounting Basics: Machine accounting rate of return
Reference No:- TGS050420

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