(Ignore income taxes in this problem. )Sheridon Corporation is investigating automating a process by purchasing a new machine for $483,000 that would have a 7 year useful life and no salvage value.By automating the process,the company would save $140,000 per year in cash operating costs.The company's current equipment would be sold for scrap now,yielding $29,000.The annual depreciation on the new machine would be $69,000.
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. )Sheridon Corporation is investigating automating a process by purchasing a new machine for $483,000 that would have a 7 year useful life and no salvage value.By automating the process,the company would save $140,000 per year in cash operating costs.The company's current equipment would be sold for scrap now,yielding $29,000.The annual depreciation on the new machine would be $69,000.
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