(Ignore income taxes in this problem.)Ducey Corporation is contemplating purchasing equipment that would increase sales revenues by $79,000 per year and cash operating expenses by $27,000 per year.The equipment would cost $150,000 and have a 6 year life with no salvage value.The annual depreciation would be $25,000.
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.)Ducey Corporation is contemplating purchasing equipment that would increase sales revenues by $79,000 per year and cash operating expenses by $27,000 per year.The equipment would cost $150,000 and have a 6 year life with no salvage value.The annual depreciation would be $25,000.
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