Question
The management of Ballard MicroBrew is considering the purchase of an automated bottling machine for $71,000. The machine would replace an old piece of equipment
The management of Ballard MicroBrew is considering the purchase of an automated bottling machine for $71,000. The machine would replace an old piece of equipment that costs $18,000 per year to operate. The new machine would cost $8,000 per year to operate. The old machine currently in use could be sold now for a scrap value of $26,000. The new machine would have a useful life of 10 years with no salvage value.
1. Compute the simple rate of return on the new automated bottling machine.
| Choose Numberator: | / | Choose Denominator: | = | Simple Rate of Return |
| / | = | Simple Rate of Return | ||
| / | = | ?% |
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Handbook Of Energy Audits
Authors: Albert Thumann, Terry Niehus, William J. Younger
8th Edition
1439821453, 978-1439821459
