The management of duker corporation is investigating purchasing equipment that would increase sales revenues by $130,000 per year and cash operating expenses by $39,000 per year. the equipment would cost $328,000 and have an 8 year life with no salvage value. the simple rate of return on the investment is closest to: 12.5% 27.7% 38.5% 15.2%

15.2 %

Explanation:

Given:

Cost of the equipment = $ 328,000

Increase in sales revenue = $ 130,000

Operating expenses = $ 39,000

Life of the  equipment = 8 years

thus,

the depreciation = Cost of the equipment / life = $ 328000 / 8 = $ 41,000 per year

Therefore, the net increase in income per year = Increase in revenue - operating expenses - depreciation = $ 130,000 - $ 39,000 - $ 41,000 = $ 50,000

Hence, the return on investment = ( net increase income / Investment ) × 100 = ( 50,000 / 328,000 ) × 100 = 15.24 %

hence, the answer is 15.2%

answer; /// i do believe that the correct answer is ; ///claude garamond;

answer; im, thinking it should be (7yrs)///plz check first.good luck