Business, 02.06.2020 22:58 lola06032003

Lazar Corporation is evaluating a proposal to invest in a machine costing $89,000. The machine has an estimated useful life of ten years, and an estimated salvage value of $14,000. The machine will increase the company's net income by approximately $9,600 per year. All revenue and expenses other than depreciation will be received and paid in cash.
Required:
1. The expected rate of return on average investment of the machine is .
a. 10.0%
b. 48.0%
c. 17.0%
d. 18.6%

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Lazar Corporation is evaluating a proposal to invest in a machine costing $89,000. The machine has a...