Belmont Corp is considering the purchase of a new piece of equipment. The annual cost savings from the equipment would be $200,000 The equipment will have an initial cost of $1,000,000 and have an 20 year life. If there is no salvage value of the equipment, what is the simple rate of return? Group of answer choices 12.5% 20% 40% 15%

Belmont Corp is considering the purchase of a new piece of equipment. The annual cost savings from the equipment would be $200,000 The equipment will have an initial cost of $1,000,000 and have an 20 year life. If there is no salvage value of the equipment, what is the simple rate of return? Group of answer choices 12.5% 20% 40% 15%

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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