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The following data pertain to an investment proposal made to Simple Corporation: Cost of equipment needed for the investment $ 34,000 Annual cash cost savings

The following data pertain to an investment proposal made to Simple Corporation:

Cost of equipment needed for the investment $ 34,000
Annual cash cost savings $ 15,000
Annual depreciation on the equipment $ 5,000

The simple rate of return of the proposed investment is closest to:

Multiple Choice

  • 38.5%

  • 44.1%

  • 29.4%

  • 33.3%

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