A company is purchasing new mahcine for 48,ooo. Management predicts machine can produce 16,000 each yr. for
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A company is purchasing new mahcine for 48,ooo. Management predicts machine can produce 16,000 each yr. for the next 10 years. Espensesa are expected to include dir M, DL and FOH totoaling 8000 per yr. plus deprectiation of 4000 per yr. The companys after tax net income based ona tax rate of 40% is 2400. What is the approx account rate of return for the machine.
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Data Analysis and Decision Making
ISBN: 978-0538476126
4th edition
Authors: Christian Albright, Wayne Winston, Christopher Zappe
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