Y6

Casey Chemicals is purchasing new process equipment to reduce volatile organic compounds emissions. The new equipment's initial cost is $350,000. The net saving are $77,000 in the first year, which increase annually by $3800 beginning in Year 2. 1 salvage value at EOY10 is $30,000. What rate of return will the company make on th investment? 26% 24% 22% 28%