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Compute the simple rate of return of replacing an old piece of equuipment with a new piece of equipment (ignore income taxes and round your
Compute the simple rate of return of replacing an old piece of equuipment with a new piece of equipment (ignore income taxes and round your answer to 1 decimal place) where: Old equipment has a salvage value of $21.000. The new machine would be purchased for $378,000. New machine has an estimated 6 year useful life. New machine has no estimated salvage value. By upgrading the equipment, the company would save $131.000 per year in cash operating costs. 16.7% 18.0% 34.7% 19.0%
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