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The Owner of the Pizza Parlor You Are Working for Has

Question 88

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The owner of the pizza parlor you are working for has asked for your help. He is trying to decide whether to buy an ice cream machine. The cost of the machine is $45,000. The revenue generated by the machine is expected to be $19,600 and the costs will be $14,200. The owner has no more information available. Ignoring taxes, calculate the unadjusted rate of return to help him make his decision.

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