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The Management of Moya Corporation Is Investigating Purchasing Equipment That

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Essay

The management of Moya Corporation is investigating purchasing equipment that would cost $336,000 and have an 8 year life with no salvage value. The equipment would allow an expansion of capacity that would increase sales revenues by $288,000 per year and cash operating expenses by $164,000 per year.
Required:
Determine the simple rate of return on the investment to the nearest tenth of a percent. Show your work!


Definitions:

Intrapersonal

Relating to internal mental processes and the inner self, often reflecting on one's thoughts, feelings, and behaviors.

REBT

Rational Emotive Behavior Therapy, a form of psychotherapy that focuses on identifying and changing irrational beliefs.

Foolishness

Foolishness is the lack of good sense or judgment; the quality of being unwise.

Humor

A cognitive and emotional aspect characterized by the ability to find something amusing, leading to laughter or amusement.

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