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Can someone plase help me? Average Rate of Return-Cost Savings Master Fab Inc. is considering an investment in equipment that will replace direct labor. The
Can someone plase help me?
Average Rate of Return-Cost Savings Master Fab Inc. is considering an investment in equipment that will replace direct labor. The equipment has a cost of $99,000 with a $9,000 residual value and a five-year life. The equipment will replace one employee who has an average wage of $31,320 per year. In addition, the equipment will have operating and energy costs of $9,540 per year. Determine the average rate of return on the equipment, giving effect to straight-line depreciation on the investment. If required, round to the nearest whole percent. 3.8 X Feedback Check My Work Divide the estimated average annual income by the average investment Average savings less depreciation expense less additional operating costs equals average annual incomeStep by Step Solution
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