WT paper corporation is considering adding another machine for the manufacture of corrugated cardboard. The machine would cost $900,000. It would have an estimated life of 6 years and no salvage...

WT paper corporation is considering adding another machine for the manufacture of corrugated cardboard. The machine would cost $900,000. It would have an estimated life of 6 years and no salvage value. The company estimates that annual revenues would increase by $430,000 and that annual expenses excluding depreciation would increase by $190,000. Depreciation expense $150,000 per year. Management has a required rate of return of 9%. Compute the accounting rate of return.