Purchased all new equipment which will be depreciated

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Reference no: EM131492581

The only difference between Joe's and Moe's is that Moe's has old, fully depreciated equipment. Joe's just purchased all new equipment which will be depreciated over eight years. Assuming all else equal:

Moe's will have a higher net income.

Moe's will have a higher return on assets.

Moe's will have a lower profit margin.

Joe's will have a lower profit margin.

Joe's will have a lower return on equity.

Reference no: EM131492581

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