Beacon Manufacturing, Inc. is planning to buy a new cutting machine. The machine costs $125,000, has an estimated life of ten years and no salvage value. The machine is expected to have the following impact:
All revenue and expenses other than depreciation will be received or paid in cash. Compute the following for this proposal:
-What is the expected return on average investment associated with the cutting machine? ____________%

Question

Beacon Manufacturing, Inc. is planning to buy a new cutting machine. The machine costs $125,000, has an estimated life of ten years and no salvage value. The machine is expected to have the following impact:
  All revenue and expenses other than depreciation will be received or paid in cash. Compute the following for this proposal:
-What is the expected return on average investment associated with the cutting machine? ____________%

Quizplus · Accepted Answer

The Answer of Beacon Manufacturing, Inc. is planning to buy a new cutting machine. The machine costs $125,000, has an estimated life of ten years and no salvage value. The machine is expected to have the following impact:
  All revenue and expenses other than depreciation will be received or paid in cash. Compute the following for this proposal:
-What is the expected return on average investment associated with the cutting machine? ____________%