(Ignore Income Taxes in This Problem

question 115

Multiple Choice

(Ignore income taxes in this problem. ) The management of Rouleau Corporation is investigating automating a process.Old equipment,with a current salvage value of $10,000,would be replaced by a new machine.The new machine would be purchased for $240,000 and would have a 6 year useful life and no salvage value.By automating the process,the company would save $64,000 per year in cash operating costs.The simple rate of return on the investment is closest to:

• A)10.0%
• B)26.7%
• C)10.4%
• D)16.7%

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Definitions:

You-viewpoint

A perspective in communication that focuses on addressing the needs, interests, and concerns of the audience.

Unethical Goals

Objectives that are morally wrong or in violation of accepted principles of right and wrong.

Honest

Characterized by truthfulness and integrity in one’s actions and statements.

Blame

Attributing responsibility for a fault or wrong.