Question: The Jason Company is considering the purchase of a
The Jason Company is considering the purchase of a machine that will increase revenues by $32,000 each year. Cash outflows for operating this machine will be $6,000 each year. The cost of the machine is $65,000. It is expected to have a useful life of five years with no salvage value. The company's minimum rate of return is 15%. For this machine, the accounting rate of return is?
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