Answered step by step
Verified Expert Solution
Question
...
1 Approved Answer
Duker Corporation is investigating the purchase of equipment that would increase sales revenues by $139,360 per year and cash operating expensas by S59,000 per year.
Duker Corporation is investigating the purchase of equipment that would increase sales revenues by $139,360 per year and cash operating expensas by S59,000 per year. The equipment would cost $328,000 and have an 8 year life with no salvage value. The company uses straight-line depreciation on all equipment The simple rate of return on the investment is: 24.5% 12.0% None of the other answers are correct 28.2% 42.5%
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/07/669b9b166d19a_814669b9b160cbff.jpg)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-text-image.webp)
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Step: 3
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started