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(Ignore income taxes in this problem.) Pro-Mate, Inc. is a producer of athletic equipment. The company is considering the purchase of a machine to produce
(Ignore income taxes in this problem.) Pro-Mate, Inc. is a producer of athletic equipment. The company is considering the purchase of a machine to produce baseball bats. The machine will cost $60,000 and have a 10-year useful life. The following annual revenues and expenses are projected: Picture The machine will have no salvage value. Assume cash flows occur uniformly throughout a year except for the initial investment. The simple rate of return would be about: 26.7% 16.7% 25.0% 40.0%
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