Homework Help is Here – Start Your Trial Now!
Business
Accounting
Crowl Corporation is investigating automating a process by purchasing a machine for $805,500 that would have a 9 year useful life and salvage value. By automating the process, the company would save $139,500 per year in cash operating costs. The new machine would replace some old equipment that would be sold for scrap now, yielding $22,500. The annual depreciation on the new machine would be $89,500. The simple rate of return on the investment is closest to ignore income taxes): (Round your answer to 1 decimal place.) Multiple Choice 6.39% 5.25% 16.85% 1125%

Crowl Corporation is investigating automating a process by purchasing a machine for $805,500 that would have a 9 year useful life and salvage value. By automating the process, the company would save $139,500 per year in cash operating costs. The new machine would replace some old equipment that would be sold for scrap now, yielding $22,500. The annual depreciation on the new machine would be $89,500. The simple rate of return on the investment is closest to ignore income taxes): (Round your answer to 1 decimal place.) Multiple Choice 6.39% 5.25% 16.85% 1125%

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question

Dog

36:51 Crowl Corporation is investigating automating a process by purchasing a machine for $805,500 that would have a 9 year useful life and no salvage value. By automating the process, the company would save $139,500 per year in cash operating costs. The new machine would replace some old equipment that would be sold for scrap now, yielding $22,500. The annual depreciation on the new machine would be $89,500. The simple rate of return on the investment is closest to ignore income taxes): (Round your answer to 1 decimal place.) Multiple Choice 6.39% 5.25% 16.85% 11.25%
Transcribed Image Text:36:51 Crowl Corporation is investigating automating a process by purchasing a machine for $805,500 that would have a 9 year useful life and no salvage value. By automating the process, the company would save $139,500 per year in cash operating costs. The new machine would replace some old equipment that would be sold for scrap now, yielding $22,500. The annual depreciation on the new machine would be $89,500. The simple rate of return on the investment is closest to ignore income taxes): (Round your answer to 1 decimal place.) Multiple Choice 6.39% 5.25% 16.85% 11.25%
Expert Solution
steps

Step by step

Solved in 3 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Asset replacement decision
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS