Question: Problem #4 - Accounting (Simple Rate of Return) Sunset Inc. is considering the purchase of a new machine for $47,000. The machine would replace

Problem #4 - Accounting (Simple Rate of Return) Sunset Inc. is considering

Problem #4 - Accounting (Simple Rate of Return) Sunset Inc. is considering the purchase of a new machine for $47,000. The machine would replace equipment that costs $13,000 per year to operate. The new machine is more efficient and would cost $6,000 per year to operate. The old machine currently in use could be sold now for $22,000. The new machine would have a useful life of 10 years with no salvage value. Required: Calculate the Accounting Rate of Return (Simple Rate of Return).

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