Straight-line depreciation and income is earned uniformly

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Beyer Corporation is considering buying a machine for $39,500. Its estimated useful life is five years, with no salvage value. Beyer anticipates annual net income after taxes of $3,400 from the new machine. What is the accounting rate of return assuming that Beyer uses straight-line depreciation and that income is earned uniformly throughout each year?

Reference no: EM13906195

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