ABC Corporation is considering purchasing equipment that would increase sales revenues by $300,000 per year and cash operating expenses by $160,000 per year. The equipment would cost $500,000 and have a 10-year life with no salvage value. The simple rate of return on the investment is closest to (ignore income taxes): O 28% O 18% O 20% 0 38%
ABC Corporation is considering purchasing equipment that would increase sales revenues by $300,000 per year and cash operating expenses by $160,000 per year. The equipment would cost $500,000 and have a 10-year life with no salvage value. The simple rate of
O 28%
O 18%
O 20%
0 38%
A small appliance repair shop uses the
O $220.
O $160.
O $340.
© $280.
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