A company is considering purchasing a machine that costs

Reference no: EM13602039

A company is considering purchasing a machine that costs $320,000 and is estimated to have no salvage value at the end of its 8-year useful life. If the machine is purchased, annual revenue are expected to be $100,000 and annual operating expenses exclusive of depreciation expenses are expected to be $38000. The straight line method of depreciation would be used. If the machine is purchased, the annual rate of return expected on this machine is ?

Reference no: EM13602039

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