35

QUESTION 35 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: 16.7% 38.4% 23.8% 21.8%