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A company purchases a machine for $142,000. The machine has an expected life of 12 years and $8,000 salvage value. The company anticipates a yearly net income of $21,000 after taxes of 29% to be received uniformly throughout each year. What is the accounting rate of return? Need more information to compute. 31.30% 48.4% 28.0% 24.84% 36.40%

A company purchases a machine for $142,000. The machine has an expected life of 12 years and $8,000 salvage value. The company anticipates a yearly net income of $21,000 after taxes of 29% to be received uniformly throughout each year. What is the accounting rate of return? Need more information to compute. 31.30% 48.4% 28.0% 24.84% 36.40%

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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A company purchases a machine for $142,000. The machine has an expected life of 12 years and $8,000 salvage value. The company anticipates a yearly net income of $21,000 after taxes of 29% to be received uniformly throughout each year. What is the accounting rate of return? Need more information to compute. 31.30% 48.4% 28.0% 24.84% 36.40%
Transcribed Image Text:A company purchases a machine for $142,000. The machine has an expected life of 12 years and $8,000 salvage value. The company anticipates a yearly net income of $21,000 after taxes of 29% to be received uniformly throughout each year. What is the accounting rate of return? Need more information to compute. 31.30% 48.4% 28.0% 24.84% 36.40%
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