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Ducey Corporation is contemplating purchasing equipment that would increase sales revenues by ...

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Ducey Corporation is contemplating purchasing equipment that would increase sales revenues by ...

Ducey Corporation is contemplating purchasing equipment that would increase sales revenues by $79,000 per year and cash operating expenses by $27,000 per year. The equipment would cost $150,000 and have a 6 year life with no salvage value. The annual depreciation would be $25,000. (Ignore income taxes.)

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Determine the simple rate of return on the investment to the nearest tenth of a percent.

Textbook

Introduction to Managerial Accounting: Brewer Edition: 9e

Edition: 9^th

Authors: Brewer, Garrison, Noreen

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