The management of Nixon Corporation is investigating purchasing equipment that would cost $552,000 and have a...

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The management of Nixon Corporation is investigating purchasing equipment that would cost $552,000 and have a 7 year life with no. salvage value. The equipment would allow an expansion of capacity that would increase sales revenues by $381,000 per year and cash operating expenses by $219,500 per year. (Ignore income taxes.) Required: Determine the simple rate of return on the investment. (Round your answer to 1 decimal place.) Simple rate of return % The management of Nixon Corporation is investigating purchasing equipment that would cost $552,000 and have a 7 year life with no. salvage value. The equipment would allow an expansion of capacity that would increase sales revenues by $381,000 per year and cash operating expenses by $219,500 per year. (Ignore income taxes.) Required: Determine the simple rate of return on the investment. (Round your answer to 1 decimal place.) Simple rate of return %

Answer rating: 100% (QA)

Given Data Cost of equipment 552000 Equipment life 7 years Salvage value N... View the full answer