Compute for the accounting rate of return

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Problem 1: JRM company is looking to invest in some machinery to replace its current malfunctioning one. The new machine which costs 420,000 would increase annual revenue by 200,000 and annual expenses by 50,000. The machine is estimated to have a useful life of 12 years and zero salvage value. Compute for the accounting rate of return

Reference no: EM132639475

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