Peng Company is considering buying a machine that will yield income of $1,900 and net cash...
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Peng Company is considering buying a machine that will yield income of $1,900 and net cash flow of $15,200 per year for three years. The machine costs $50,400 and has an estimated $10,500 salvage value. Compute the accounting rate of return for this investment. Numerator: Accounting Rate of Return Denominator: Accounting Rate of Return Accounting rate of retum. Peng Company is considering buying a machine that will yield income of $1,900 and net cash flow of $15,200 per year for three years. The machine costs $50,400 and has an estimated $10,500 salvage value. Compute the accounting rate of return for this investment. Numerator: Accounting Rate of Return Denominator: Accounting Rate of Return Accounting rate of retum.
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