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The management of Stillford MicroBrew is considering purchasing an automated bottling machine for $82,000. The machine would replace an old piece of equipment that costs
The management of Stillford MicroBrew is considering purchasing an automated bottling machine for $82,000. The machine would replace an old piece of equipment that costs $36,000 per year to operate. The new machine would cost $12,200 per year to operate. The old machine currently in use could be sold now for a scrap value of $4,000. The new machine would have a useful life of 10 years with no salvage value. Required: Compute the simple rate of return on the new automated bottling machine. Simple rate of return %
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