The CFO of The Fun Factory is investigating the possibility of investing in a three-dimensional printer that would cost $16,500. The printer would eliminate the need to have prototypes of new toys be produced by a third party. The cost of having the prototypes manufactured by the third party is about $7,161 per year. The printer would have a useful life of five years with no salvage value with expected annual operating costs of $3,300 per year. Required: Compute the simple rate of return on the printer. (Round your answer to 1 decimal place.) Simple rate of return %

The CFO of The Fun Factory is investigating the possibility of investing in a three-dimensional printer that would cost $16,500. The printer would eliminate the need to have prototypes of new toys be produced by a third party. The cost of having the prototypes manufactured by the third party is about $7,161 per year. The printer would have a useful life of five years with no salvage value with expected annual operating costs of $3,300 per year. Required: Compute the simple rate of return on the printer. (Round your answer to 1 decimal place.) Simple rate of return %

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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