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29 Denny Corporation is considering replacing a technologically obsolete machine with a new state-of-the-art numerically controlled machine. The new machine would cost $190,000 and would have a ten-year useful life. Unfortunately, the new machine would have no salvage value. The new machine would cost $28,000 per year to operate and maintain, but would save $60.000 per year in labor and other costs. The old machine can be sold now for scrap for $19.000. The simple rate of return on the new machine is closest to gnore income taxes) Mutiple Choice O O 684% 31.58% 15.20%

29 Denny Corporation is considering replacing a technologically obsolete machine with a new state-of-the-art numerically controlled machine. The new machine would cost $190,000 and would have a ten-year useful life. Unfortunately, the new machine would have no salvage value. The new machine would cost $28,000 per year to operate and maintain, but would save $60.000 per year in labor and other costs. The old machine can be sold now for scrap for $19.000. The simple rate of return on the new machine is closest to gnore income taxes) Mutiple Choice O O 684% 31.58% 15.20%

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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29 02730 Denny Corporation is considering replacing a technologically obsolete machine with a new state-of-the-art numerically controlled machine. The new machine would cost $190,000 and would have a ten-year useful life. Unfortunately, the new machine would have no salvage value. The new machine would cost $28,000 per year to operate and maintain, but would save $60,000 per year in labor and other costs. The old machine can be sold now for scrap for $19,000. The simple rate of return on the new machine is closest to @gnore income taxes) Mutiple Choice O O e 684% 31.58% 15.20% MOK
Transcribed Image Text:29 02730 Denny Corporation is considering replacing a technologically obsolete machine with a new state-of-the-art numerically controlled machine. The new machine would cost $190,000 and would have a ten-year useful life. Unfortunately, the new machine would have no salvage value. The new machine would cost $28,000 per year to operate and maintain, but would save $60,000 per year in labor and other costs. The old machine can be sold now for scrap for $19,000. The simple rate of return on the new machine is closest to @gnore income taxes) Mutiple Choice O O e 684% 31.58% 15.20% MOK
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