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What the simple rate of return on the investment

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Problem - The management of Stanforth Corporation Is investigating automating a process. Old equipment, with a current salvage value of $21,000, would be replaced by a new machine. The new machine would be purchased for $462,000 and would have a 6 year useful life and no salvage value. By automating the process, the company would save $159,000 per year. In cash operating costs, what the simple rate of return on the investment?

Reference no: EM133041639

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