Peng Company is considering buying a machine that will yield income of ($ 1,950) and net cash
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Peng Company is considering buying a machine that will yield income of \(\$ 1,950\) and net cash flow of \(\$ 14,950\) per year for three years. The machine costs \(\$ 45,000\) and has an estimated \(\$ 6,000\) salvage value. Compute the accounting rate of return for this investment.
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The Accounting Rate of Return ARR is a financial ratio that shows the potential earnings or profits ...View the full answer
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