The management of Ro Corporation is investigating automating a process. Old equipment, with a current salvage value of $24,000, would be replaced by a new machine. The new machine would be purchased for $468,000 and would have a 6 year useful life and no salvage value. By automating the process, the company would save $161,000 per year in cash operating costs. The simple rate of return on the investment is closest to (Ignore income taxes.) :
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “The management of Ro Corporation is investigating automating a process. Old equipment, with a current salvage value of $24,000, would be ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
Norman Dowd owns his own taxi, for which he bought a $11,000 permit to operate two years ago. Mr. Dowd earns $33,000 a year operating as an independent but has the opportunity to sell the taxi and permit for $41,500 and take a position as dispatcher
Answers (1)
Math question how do you know what kind of sampling? One month, the electric company sends surveys with every electric bill. The company requests that customers return the survey with the bill.
Answers (1)
After feeding fish in a display tank, a food worker returns to the kitchen. What should she do before preparing food?
Answers (2)
In the percent increase or decrease problems, the portion is A. ½ the original price. B. the amount of increase or decrease. C. the new price. D. the original price.
Answers (1)
Governments may successfully intervene in competitive markets in order to achieve economic efficiencyA) at no time; competitive markets are always efficient without government intervention. B) to increase the incidence of positive externalities.
Answers (1)
New Questions in Business
Many health care companies are making adaptations to meet the needs of aging population as the demand for medical services and products such as diabetes supplies increases.
Answers (1)
Shane owns shares of Vegan Pizza Inc., a food and beverages company. The company's financial situation takes a turn for the worse and ends up in severe debt.
Answers (1)
What happens to supply when input costs go up? It increases because the good becomes cheaper to produce. It increases because the good becomes more expensive to produce. It decreases because consumers find a substitute product.
Answers (2)
In 2007 the Fitzu Co. had net credit sales of $750,000. On January 1, 2007, Allowance for Doubtful Accounts had a credit balance of $16,000. During 2007, $30,000 of uncollectible accounts receivable were written off.
Answers (1)
An online investment blogger advises investing in mutual funds that have performed badly the past year because 'regression to the mean tells us that they will do well next year.' Is he correct?
Answers (1)