Compute the accounting rate of return

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Question - The capital investment committee of Rigma Life Co. is currently considering purchasing a new hologram machine to create fictitious voters and has the following information:

Purchase price $240,000

Residual Value $40,000

Desired payback period 4 years

Minimum Rate of Return 15%

Required - Compute the Accounting rate of return.

Reference no: EM132527452

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