Assume that a company is considering purchasing a new piece of equipment $240,000 that would have a useful life of 10 years and no salvage value. The new equipment would cost $20,000 per year to operate and it would replace an old piece of equipment that costs $51,000 per year to operate. The old equipment currently being used could be sold for a salvage value of $40,000. The simple rate of return for the new equipment is closest to: 20.00% 07.84% 3.50% 12.00% Question 28 3 pts Assume a company is considering adding a new product. The expected cost and revenue data for this product are as follows: 5,000 units $ 60 Annual sales Unit selling price Unit variable costs: Production Selling Incremental fixed costs per year Production Seling $ 33 $ 6 $34,500 $45,000 W the company adds the new product, it expects the contribution margin of other product lines to drop by $15,300 per year. What is the financial advantage (disadvantage) of adding the new product? $40.800 $25.500 $10.200 $89 700