(Ignore Income Taxes in This Problem

question 10

Essay

(Ignore income taxes in this problem. )The management of Orebaugh Corporation is investigating automating a process by replacing old equipment by a new machine.The old equipment would be sold for scrap now for $15,000.The new machine would cost $445,000,would have a 5 year useful life,and would have no salvage value.By automating the process,the company would save $165,000 per year in cash operating costs.
Required:
Determine the simple rate of return on the investment to the nearest tenth of a percent.Show your work!

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Definitions:

Prenatal Screening

Medical tests and procedures conducted during pregnancy to assess the health status and development of the fetus, and to detect any potential genetic or chromosomal abnormalities.

Justify Abortion

The act of providing reasons or arguments in support of terminating a pregnancy based on ethical, medical, or personal criteria.

GINA

The Genetic Information Nondiscrimination Act, a U.S. law that protects individuals from genetic discrimination in health insurance and employment.

Genetic Tests

Laboratory methods used to identify changes in chromosomes, genes, or proteins, typically to discover genetic disorders or predispositions.