(Ignore income taxes in this problem.)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.
Required:
Determine the simple rate of return on the investment to the nearest tenth of a percent.Show your work!

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The Answer of (Ignore income taxes in this problem.)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.
Required:
Determine the simple rate of return on the investment to the nearest tenth of a percent.Show your work!

(Ignore Income Taxes in This Problem