Question: A company is considering purchasing a machine for $30,000. The machine will generate an after-tax net income of $3,800 per year. Annual depreciation expense would

A company is considering purchasing a machine for $30,000. The machine will generate an after-tax net income of $3,800 per year. Annual depreciation expense would be $3,300. What is the approximate accounting rate of return?

25.33%

9.00%

12.67%

23.67%

13.16%

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