Question

A company is considering purchasing factory equipment that costs $640,000 and is estimated to have no salvage value at the end of its 8-year useful life. if the equipment is purchased, annual revenues are expected to be $180,000 and annual operating expenses exclusive of depreciation expense are expected to be $76,000. the straight-line method of depreciation would be used. if the equipment is purchased, the annual rate of return expected on this equipment is select one:

Answer 1

I honestly don’t even know