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55. The Jason Company is considering the purchase of a machine that Will increase revenues by $32,000 each year. Cash outows for operating this machine
55. The Jason Company is considering the purchase of a machine that Will increase revenues by $32,000 each year. Cash outows for operating this machine Will be $6,000 each year. The cost of the machine is $65,000. It is expected to have a useful life of five years With no salvage value. For this machine, What is the simple rate of return? (Ignore income taxes in this problem.) A. 9.2%. B. 20.0%. C. 40.0%. D. 49.2%
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