Question
That management at Platonik is investigating purchasing equipment that would increase sales revenue by $269,000 per year and cash operating expenses by $156,000 per year.
That management at Platonik is investigating purchasing equipment that would increase sales revenue by $269,000 per year and cash operating expenses by $156,000 per year. The equipment would cost $294,000 and have a six year life with no salvage value. What is the simple rate of return on investment?
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Managerial Accounting Tools for Business Decision Making
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
8th edition
ISBN: 978-1-119-3904, 1119392422, 111939242X, 1119390451, 978-1119392422
