Accounting rate of return means average return on the initial investment. In other words, accounting rate of return is a ratio that shows relationship between accounting income and average investment. To calculate: Machine’s accounting rate of return.

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Chapter 25, Problem 7E

To determine

Introduction: Accounting rate of return means average return on the initial investment. In other words, accounting rate of return is a ratio that shows relationship between accounting income and average investment.

To calculate: Machine’s accounting rate of return.

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