Computing the average accounting rate of return

Reference no: EM131969623

Question: Egypt Co. has a machine that costs $126,000. The machine will be depreciated on a straight-line basis to a zero book value over their eight-year life. The machine is expected to generate net income of $16,000 a year for the first four years and $12,000 a year for the last four years. What is the average accounting rate of return?

Reference no: EM131969623

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