Solution-Determine the simple rate of return on the

Determine the simple rate of return on the investment

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Question - Russnak Corporation is investigating automating a process by purchasing a new machine for $198,000 that would have a 9 year useful life and no salvage value. By automating the process, the company would save $68,000 per year in cash operating costs. The company's current equipment would be sold for scrap now, yielding $18,000. The annual depreciation on the new machine would be $22,000. Determine the simple rate of return on the investment to the nearest tenth of a percent. Show your work.

Reference no: EM133064045

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Determine the simple rate of return on the investment

Reference no: EM133064045

Reference no: EM133064045

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