Course Content / MA- Chapter 12 / MA Chapter 12 Homework Finish attempt... Question 5 Not yet answered Marked out of 2.50 P Flag question Increase in revenue Increase in expenses Pretax income from investment Income tax expense Net income from investment $ Average Rate of Return Lakeland Company is considering the purchase of equipment for $175,000. The equipment will expand the Company's production and increase revenue by $40,000 per year. Annual cash operating expenses will increase by $12,000. The equipment's useful life is 10 years with no salvage value. Lakeland uses straight-line depreciation. The income tax rate is 25%. What is the average rate of return on the investment? Do not use negative signs with your answers. $ Round answer to the nearest whole percentage, if applicable. Average rate of return on investment 96 Previous eBook Save Answers Print Finish attempt... >