Russnak Corporation is investigating automating a process by purchasing a new machine for $198,000 that would have a 9 year useful life and no salvage value. By automating the process, the company would save $68,000 per year in cash operating costs. The company's current equipment would be sold for scrap now, yielding $18,000. The annual depreciation on the new machine would be $22,000. (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 Russnak Corporation is investigating automating a process by purchasing a new machine for $198,000 that would have a 9 year useful life and no salvage value. By automating the process, the company would save $68,000 per year in cash operating costs. The company's current equipment would be sold for scrap now, yielding $18,000. The annual depreciation on the new machine would be $22,000. (Ignore income taxes.)Required:Determine the simple rate of return on the investment to the nearest tenth of a percent.

Russnak Corporation Is Investigating Automating a Process by Purchasing a New