Determine what is the rate of return for the machine

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A new machine can be purchased today at $300000. The annual revenue from the machine is calculated to be $67000 and the equipment will last 10 years. Expect the the maintenance and operating costs to be $3000 a year and to increase $600 per year. The salvage value of the machine will be $20000. What is the rate of return for this machine?

Reference no: EM13238303

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