Crowl Corporation is investigating automating a process by purchasing a machine for $808,200 that would have a 9 year useful life and no salvage value. By automating the process, the company wouldsave $141,000 per year in cash operating costs. The new machine would replace some old equipment that would be sold for scrap now, yielding $22,800. The annual depreciation on the new machinewould be $89,800. The simple rate of return on the investment is closest to (lgnore income taxes.): (Round your answer to 1 decimal place.)Multiple Cholce11.28%16.88%6.52%5.28%McGrawHill< Prev2 of 4Next >|自0P Type here to search9:45 AM49°F Mostly sunny10/19/202120DELLF2F3F4F5F6F7F8F9F10F11F12PrtScrInsertDeletePgUpPgDnHomeEnd%23%24&Num

Net Cost of machine = Purchase price - sale of old machine = $808200−22800 = $785,400

Answered: Crowl Corporation is investigating…

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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