Question: Please help me about last question Average Rate of Return Clancy Company is considering the purchase of equipment for $110,000. The equipment will expand the

Please help me about last question

Average Rate of Return

Clancy Company is considering the purchase of equipment for $110,000. The equipment will expand the company's production and increase revenue by $34,000 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?

$ Do not use negative signs with your answers. Increase in revenue $ 34,000 Increase in expenses 19,000 Pretax income from investment 15,000 Income tax expense 5,250 Net income from investment $ 9,750 Round answer to the nearest whole percentage, if applicable. Average rate of return on investment 9 X 9

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