(Ignore income taxes in this problem.) The management of Stanforth Corporation is investigating omating a process. Old equipment, with a current salvage value of $24,000, would be replaced by a new chine. The new machine would be purchased for $516,000 and would have a six-year useful life and no vage value. By automating the process, the company would save $173,000 per year in cash operating sts. The simple rate of return on the investment is closest to percent. A. 17.7 B. 16.9 C. 16.7 D. 33.5
(Ignore income taxes in this problem.) The management of Stanforth Corporation is investigating omating a process. Old equipment, with a current salvage value of $24,000, would be replaced by a new chine. The new machine would be purchased for $516,000 and would have a six-year useful life and no vage value. By automating the process, the company would save $173,000 per year in cash operating sts. The simple rate of return on the investment is closest to percent. A. 17.7 B. 16.9 C. 16.7 D. 33.5
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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