Solution-Compute the simple rate of return on the new

Compute the simple rate of return on the new automated

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Reference no: EM132520947

Simple Rate of Return Method

The management of Stillford Micro Brew is considering the purchase of an automated bottling machine for $80,000. The machine would replace an old piece of equipment that costs $33,000 per year to operate. The new machine would cost $10,000 per year to operate. The old machine currently in use could be sold now for a scrap value of $5,000. The new machine would have a useful life of 10 years with no salvage value.

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Question 1: Compute the simple rate of return on the new automated bottling machine.

Reference no: EM132520947

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Compute the simple rate of return on the new automated : Compute the simple rate of return on the new automated bottling machine. The management of Stillford Micro Brew is considering the purchase

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Compute the simple rate of return on the new automated

Reference no: EM132520947

Reference no: EM132520947

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