Multiple Choice
Slomkowski Corporation is contemplating purchasing equipment that would increase sales revenues by $298,000 per year and cash operating expenses by $143,000 per year. The equipment would cost $712,000 and have an 8 year life with no salvage value. The annual depreciation would be $89,000. The simple rate of return on the investment is closest to (Ignore income taxes.) :
A) 9.3%
B) 21.8%
C) 22.1%
D) 12.5%
Correct Answer:
Verified
Correct Answer:
Verified
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