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A company is planning to purchase a machine that will cost $29.400 with...

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Accounting

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A company is planning to purchase a machine that will cost $29.400 with a six-year life and no salvage value. The company uses straight-line depreciation. The company expects to sell the machine's output of 3.000 units evenly throughout each year. A projected income statement for each year of the asset's life appears below. What is the accounting rate of return for this machine? $ 97,000 Sales Costs: Manufacturing Depreciation on machine Selling and administrative expenses Income before taxes Income tax (35%) Net income $50,400 4,900 37,000 (92,300) $ 4,700 (1,645) $ 3,055 ooooo

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