What is the simple rate of return on the investment


The management of Kissinger Corporation is investigating automating a process. Old equipment, with a current salvage value of $23,000, would be replaced by a new machine. The new machine would be purchased for $330,000 and would have a 6 year useful life and no salvage value. By automating the process, the company would save $108,000 per year in cash operating costs. what is the simple rate of return on the investment ?

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Accounting Basics: What is the simple rate of return on the investment
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