9. Lt. Dan Corporation invested S80,000 in a manufacturing equipment. The salvage value of the asset is expected to be $0. The company is expected to add $9,600 per year to the net income. Using the original cost of the asset, the unadjusted rate of return on the investment will be? Hint: If the problem does not give you enough information to determine the net values, keep your calculations simple!

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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9. Lt. Dan Corporation invested S$80,000 in a manufacturing equipment. The salvage value of the
asset is expected to be $0. The company is expected to add $9,600 per year to the net income. Using
the original cost of the asset, the unadjusted rate of return on the investment will be?
Hint: If the problem does not give you enough information to determine the net values, keep your
calculations simple!
Transcribed Image Text:9. Lt. Dan Corporation invested S$80,000 in a manufacturing equipment. The salvage value of the asset is expected to be $0. The company is expected to add $9,600 per year to the net income. Using the original cost of the asset, the unadjusted rate of return on the investment will be? Hint: If the problem does not give you enough information to determine the net values, keep your calculations simple!
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