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The Management of Ro Corporation Is Investigating Automating a Process

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The management of Ro Corporation is investigating automating a process. Old equipment, with a current salvage value of $11,000, would be replaced by a new machine. The new machine would be purchased for $243,000 and would have a 9 year useful life and no salvage value. By automating the process, the company would save $69,000 per year in cash operating costs. The simple rate of return on the investment is closest to (Ignore income taxes.) :

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Definitions:

Premature Ejaculation

A sexual dysfunction characterized by ejaculation that occurs with minimal sexual stimulation and before the person wishes it, leading to distress or interpersonal difficulty.

Sexual Climax

The peak of sexual excitement, characterized by strong feelings of pleasure and, typically, by ejaculation in males and vaginal contractions in females.

Sexual Partner

An individual with whom another individual engages in sexual activity.

Condoms

Barrier devices used during sexual intercourse to reduce the probability of pregnancy and the transmission of sexually transmitted infections (STIs).

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