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2 pts (ignore income taxes in this problem. Tu Corporation is investigating automating a process by purchasing a machine for $423,000 that would have a
2 pts (ignore income taxes in this problem. Tu Corporation is investigating automating a process by purchasing a machine for $423,000 that would have a 9 year useful life and no salvage value. By automating the process, the company would save $112.000 per year in cash operating costs. The new machine would replace some old equipment that would be sold for scrap now, yielding $27.000. The annual depreciation on the new machine would be $47.000. The simple rate of return on the Investment is closest to: 26.595 15.4% 16.4% 11.1%
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