Ultra-Corporation purchased an equipment costing $300,000. The expected after-tax net income of $9,000 each year. It is predicted that the machine is expected to have a 12-year service life and a residual value $60,000. Company uses straight-line depreciation. Compute this machine's accounting rate of return?

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The Accounting Rate of Return ARR is a financial ratio that shows the potential profits an investmen... View the full answer