The management of Nixon Corporation is investigating purchasing equipment that would cost $518,000 and have a 7 year life with no salvage value. The equipment would allow an expansion of capacity that would increase sales revenues by $364,000 per year and cash operating expenses by $211,000 per year. (Ignore income taxes.)Required:Determine the simple rate of return on the investment to the nearest tenth of a percent.

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The Answer of The management of Nixon Corporation is investigating purchasing equipment that would cost $518,000 and have a 7 year life with no salvage value. The equipment would allow an expansion of capacity that would increase sales revenues by $364,000 per year and cash operating expenses by $211,000 per year. (Ignore income taxes.)Required:Determine the simple rate of return on the investment to the nearest tenth of a percent.

The Management of Nixon Corporation Is Investigating Purchasing Equipment That