Question: Murphee Manufacturing is considering purchasing a machine with an expected life of 8 years for $68,000. The machine has an estimated salvage value of $4,000,

Murphee Manufacturing is considering purchasing a machine with an expected life of 8 years for $68,000. The machine has an estimated salvage value of $4,000, Murphee expects the new machine to generate cost savings of $10,950.

What is the accounting rate of return of the machine (round answer to 2 decimal places)?

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