(Ignore income taxes in this problem. ) The Jason Company is considering the purchase of a machine that will increase revenues by $32,000 each year.Cash outflows for operating this machine will be $6,000 each year.The cost of the machine is $65,000.It is expected to have a useful life of five years with no salvage value.For this machine,the simple rate of return is:
A) 20%
B) 40%
C) 49.2%
D) 9.2%
Correct Answer:
Verified
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