Question: Exercise E: Average Rate of Return Clancy Company is considering the purchase of equipment for $100,000. The equipment will expand the Company's production and increase

Exercise E: Average Rate of Return Clancy Company is considering the purchase of equipment for $100,000. The equipment will expand the Company's production and increase revenue by $30,000 per year. Annual cash operating expenses will increase by $8,000. The equipment's useful life is 10 years with no salvage value. Clancy uses straight-line depreciation. The income tax rate is 35%. What is the average rate of return on the investment

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