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    Accounting Rate of Returns for Machines

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    Cleug is replacing one of his machines. He can choose between machine A or machine B. Details of the machine are as follows...

    Estimated receipts and payments are as follows...

    Required:

    a) Calculate the accounting rate of return (ARR) for each machine. [12]
    b) Calculate the payback period for each machine. [4]
    c) Calculate the net present value (NPV) of each machine. [11]

    Please see attachment for full question.

    © BrainMass Inc. brainmass.com June 3, 2020, 5:09 pm ad1c9bdddf
    https://brainmass.com/business/capital-budgeting/accounting-rate-returns-machines-15502

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    The expert examines accounting rate of returns for machines.

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