The management of Ro Corporation is investigating automating a process. Old equipment, with a current salvage value of $15,000, would be replaced by a new machine. The new machine would be purchased for $366,000 and would have a 6 year useful life and no salvage value. By automating the process, the company would save $127,000 per year in cash operating costs. The simple rate of return on the investment is closest to (Ignore income taxes.):

uld be replaced by a new machine. The new machine would The management of Ro Corporation is investigating automating a process. Old equipment, with a current salvage value of $15,000, would be replaced by a new machine. The new machine would be purchased for $366,000 and would have a 6 year useful life and no salvage value. By automating the process, the company would save $127,000 per year in cash operating costs. The simple rate of return on the investment is closest to (Ignore income taxes.) company would save $127.000 per year in cash operating costs. The Multiple Cholce 18.8% 18.0% 34.7% 16.7%