Buttercream16
05.05.2020 •
Business
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.): (Round your answer to 1 decimal place.)
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