Calculate the accounting rate of retun

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Reference no: EM133347044

Question: Sunset Inc. is considering the purchase of a new machine for $47,000. The machine would replace equipment that costs $13,000 per year to operate. The new machine is more efficient and would cost $8,000 per year to operate. The old machine currently in use could be sold now for $22,000. The new machine would have a useful life of 10 years with no salvage value. Required: Calculate the Accounting Rate of Retun (Simple Rate of Retum).

Reference no: EM133347044

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