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Question 14 15 Sove SMS 666 points TB MC Qu. 08-92 (Ignore income taxes in this problem) Mercer Corporation crore income taxes in this problem
Question 14 15 Sove SMS 666 points TB MC Qu. 08-92 (Ignore income taxes in this problem) Mercer Corporation crore income taxes in this problem Mercer Corporation is considering replacing technologicaly obsolete machine with a newe -of-the-art numerically controlled machine. The new machine would cost $180.000 and would have a twelve-year useful life. Unfortunately, the new machind would have no salvage value. The new machine would cost $26.000 per year to operate and mar but would save $55.000 per year in labor and other costs. The old machine can be sold now for scrap for $18.000. The simple rate of return on the new machine is closest to Assume the company uses straight Ine depreciation) 10.49% O 20.99% O 32 22% 9.44% References Multiple Choice Daculty 2 Mesum O Type here to search ENG 100PM 1.2009
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