The Management of Duker Corporation Is Investigating Purchasing Equipment That

question 58

Multiple Choice

The management of Duker Corporation is investigating purchasing equipment that would increase sales revenues by $130,000 per year and cash operating expenses by $39,000 per year. The equipment would cost $328,000 and have an 8 year life with no salvage value. The simple rate of return on the investment is closest to:

• A)12.5%
• B)27.7%
• C)38.5%
• D)15.2%

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The outcomes or scores obtained from exams or evaluations conducted halfway through an academic term.

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