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    Apr 11, 2011, 06:31 PM
    Accounting- Rate of return, payback period.
    For each machine compute the projected accounting rate of return. Compute the payback period for each machine. The company's minimum rate of return is 12%. The maximum payback period is 6 years.

    Machine 1 Machine 2

    Cost of machine $500,000 $550,000
    Residual value $50,000 $50,000
    Net income 34,695 40,670
    Annual net cash inflows 91215 90170

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