$18$

Neville Company is considering an investment of $$380,000$ in heavy equipment, which will enable the company to be more competitive in the construction industry. The useful service life of the equipment is estimated to be $10$ years, with $$30,000$ salvage value. Straight$-$line depreciation is used. The company estimates that net income will increase by $$41,000$ per year as a result of the company's ability to handle a wider range of projects with the new equipment.

$004549$

The expected rate of return on average investment will be approximately:

Multiple Choice

$20\%.$

$43\%.$

$23\%.$

$37\%.$