sales and expenses are projected:
Assume cash flows occur uniformly throughout a year except for the initial investment.
-The simple rate of return for the new machine is closest to:

Name: sales and expenses are projected: Assume cash flows occur uniformly throughout a year except for the initial investment. -The simple rate of return for the new machine is closest to:
Brand: Quizplus
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Question

sales and expenses are projected:
  Assume cash flows occur uniformly throughout a year except for the initial investment.
-The simple rate of return for the new machine is closest to:

Quizplus · Accepted Answer

Simple rate of return = Annual incremental net operating income ÷ Initial investment
= $4,400 ÷ $16,000 = 27.5%

Sales and Expenses Are Projected