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Duker Corporation is investigating the purchase of equipment that would increase sales revenues by $139,360 per year and cash operating expenses by $59.000 per year.

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Duker Corporation is investigating the purchase of equipment that would increase sales revenues by $139,360 per year and cash operating expenses by $59.000 per year. The equipment would cost $328,000 and have an 8 year life with no salvage value. The company use. waight-line depreciation on all equipment. The simple rate of return on the investment is: 24.5% 42.5% 12.0% None of the other answers are correct 28.2%

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