The management of Ballard MicroBrew is considering the purchase of an automated bottling machine for...
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The management of Ballard MicroBrew is considering the purchase of an automated bottling machine for $43,000. The machine would replace an old piece of equipment that costs $11,000 per year to operate. The new machine would cost $5,000 per year to operate. The old machine currently in use is fully depreciated and could be sold now for a scrap value of $17,000. The new machine would have a useful life of 10 years with no salvage value. Required: Compute the simple rate of return on the new automated bottling machine. Simple rate of return Choose Numerator: Choose Denominator: Simple Rate of Return = | Simple rate of return
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