contestada

The management of Plotnik Corporation is investigating purchasing equipment that would increase sales revenues by $269,000 per year and cash operating expenses by $156,000 per year. The equipment would cost $294,000 and have a 6 year life with no salvage value. The simple rate of return on the investment is closest to (Ignore income taxes.):

Respuesta :

Parrain

,Answer: 21.77%

Explanation:

Simple rate of return = Net income per year / Investment

Net income = Revenue - expenses - depreciation

= 269,000 - 156,000 - (294,000 / 6)

= $64,000

Simple rate of return = 64,000 / 294,000

= 21.77%

Otras preguntas