(Ignore income taxes in this problem.)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.
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.)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.
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