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A company is considering purchasing a machine that costs $280,000 and is estimated to have no salvage value at the end of its 8 year useful life. If the machine is purchased annual revenues are expected to be $100,000 and annual operating expenses exclusive of depreciation expense are expected to be $38,000. Strainghtline depreciation is used. If the machine is purchased what is the expected annual rate of return?

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M9988172

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