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Calculate the accounting rate of return

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Reference no: EM132081060

Question - Broncho Industries is considering the purchase of a $100,000 machine that is expected to result in a decrease of $15,000 per year in cash expenses. This machine, which has no residual value, has an estimated useful life of 10 years and will be depreciated on a straight-line basis. For this machine, calculate the accounting rate of return?

Reference no: EM132081060

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