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Wombles Corporation is contemplating purchasing equipment that would increase sales revenues by $400,000 per year and cash operating expenses by $220,000 per year. The equipment

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Wombles Corporation is contemplating purchasing equipment that would increase sales revenues by $400,000 per year and cash operating expenses by $220,000 per year. The equipment would cost $738,000 and have a 9 year life with no salvage value. The annual depreciation would be $82,000. The simple rate of return on the investment is closest to: 1% 24% O 15% O 13%

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