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This machine which has no residual value has an estimated

Question - Broncho Industries is considering the purchase of a $100,000 machine that is expected to result in a decrease of $15,000 per year in cash expenses. This machine, which has no residual value, has an estimated useful life of 10 years and will be depreciated on a straight-line basis. For this machine, calculate the accounting rate of return?

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Accounting Basics: This machine which has no residual value has an estimated

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