Determine the simple rate of return on the investment

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Question - The management of Nixon Corporation is investigating purchasing equipment that would cost $528,000 and have a 7 year life with no salvage value. The equipment would allow an expansion of capacity that would increase sales revenues by $369,000 per year and cash operating expenses by $213,500 per year. (Ignore income taxes.) Determine the simple rate of return on the investment.

Reference no: EM133088719

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