(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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Definitions:

Novel

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Haymarket Affair

Violence during an anarchist protest at Haymarket Square in Chicago on May 4, 1886; the deaths of eight, including seven policemen, led to the trial of eight anarchist leaders for conspiracy to commit murder.

Labor Movement

The Labor Movement is a social and political movement advocating for the rights of workers, including better wages, working conditions, and labor laws, significant in improving the lives of workers worldwide.

Un-American

A term used to describe actions, behaviors, or beliefs that are considered to significantly deviate from or oppose what is perceived as typical American ideals or values.