C Corporation is investigating automating a process by purchasing a machine for $810,000 that would have a 9 year useful life and no salvage value. By automating the process, the company would save $142,000 per year in cash operating costs. The new machine would replace some old equipment that would be sold for scrap now, yielding $23,000. The annual depreciation on the new machine would be $90,000. The simple rate of return on the investment is closest to (Ignore income taxes.) :
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Home » Business » C Corporation is investigating automating a process by purchasing a machine for $810,000 that would have a 9 year useful life and no salvage value. By automating the process, the company would save $142,000 per year in cash operating costs.