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Business, 15.04.2020 18:58 johnnydenali67
Addison Corporation is considering the purchase of equipment that would increase sales revenues by $250,000 per year and cash operating expenses by $100,000 per year. The equipment would cost $400,000 and have a 5-year life with no salvage value. The simple rate of return on the investment is closest to ___
a) 17.5%
b) 20.0%
c) 25.5%
d) 35.0%
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