Determine the proposal simple rate of return

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Question - Assume the following information for a capital budgeting proposal with a five-year time horizon:

Initial investment:

Cost of equipment (zero salvage value) $529,000

Annual revenues and costs:

Sales revenues $300,000

Variable expenses $130,000

Depreciation expense $50,090

Fixed out-of-pocket costs $40,000

Required - Determine the proposal simple rate of return?

Reference no: EM133164004

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