How to compute the simple rate of return on the printer

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Reference no: EM132586286

The CFO of The Fun Factory is investigating the possibility of investing in a three-dimensional printer that would cost $20,000. The printer would eliminate the need to have prototypes of new toys be produced by a third party. The cost of having the prototypes manufactured by the third party is about $8,000 per year. The printer would have a useful life of five years with no salvage value with expected annual operating costs of $3,000 per year.

Required:

Question 1: Compute the simple rate of return on the printer.

Reference no: EM132586286

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