Question: Chapter 11 - Homework eBook Calculator Print Item Average Rate of Return-Cost Savings Midwest Fabricators Inc. is considering an investment in equipment that will replace

Chapter 11 - Homework eBook Calculator Print Item Average Rate of

Chapter 11 - Homework eBook Calculator Print Item Average Rate of Return-Cost Savings Midwest Fabricators Inc. is considering an investment in equipment that will replace direct labor. The equipment has a cost of $101,000 with a $9,000 residual value and a five-year life. The equipment will replace one employee who has an average wage of $30,900 per year. In addition, the equipment will have operating and energy costs of $9,750 per year. Determine the average rate of return on the equipment, giving effect to straight-line depreciation on the investment. If required, round to the nearest whole percent. Check My Work 5 more Check My Work uses remaining. Previous Assignment Score: 51.76% All work saved. Save and Exit Submit Assignment for Grading

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