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(Ignore Income Taxes in This Problem

question 127

Essay

(Ignore income taxes in this problem. )Pal Corporation is contemplating purchasing equipment that would increase sales revenues by $438,000 per year and cash operating expenses by $258,000 per year.The equipment would cost $504,000 and have a 9 year life with no salvage value.The annual depreciation would be $56,000.
Required:
Determine the simple rate of return on the investment to the nearest tenth of a percent.Show your work!


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The apprehension and suspicion towards communist ideology and its potential spread, especially prevalent during the Cold War era.

Cold War

A period of geopolitical tension between the Soviet Union and the United States and their respective allies from the late 1940s until the end of the Soviet Union in 1991.

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An individual called to testify in a legal or legislative proceeding who is expected to support the position or perspective of the party calling them.

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A subset of members within a legislative body, specialized in particular policy areas to conduct hearings and review legislation.

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