After five formal, Inc.. Is considering making an investment in a new cutting machine for its recently acquired Hollywood factory. The finance department is working on the analysis for the manufacturing group to determine if the purchase of the equipment needs to companies investment objectives. It has been determined that the cost of the cutting machine is $1,575,000 and have a useful life of 10 years. The net income for the Hollywood factory is 275,000 in the operating income is 325,000. The residual value of the equipment at the end of its tenure life is $25,000. Calculate the return on investment for the purchase of the equipment

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