question archive The management of Stanforth Corporation is investigating automating a process
The management of Stanforth Corporation is investigating automating a process
Subject:AccountingPrice: Bought3
The management of Stanforth Corporation is investigating automating a process. Old equipment, with a current salvage value of $15,000, would be replaced by a new machine. The new machine would be purchased for $408,000 and would have a 6 year useful life and no salvage value. By automating the process, the company would save $141,000 per year in cash operating costs. The simple rate of return on the investment is closest to:18.6%17.9%34.6%16.7%
