This paper circulates around the core theme of Hinck Corporation is investigating automating a process by purchasing a new machine for $520,000 that would have an 8 year useful life and no salvage value. By automating the process, the company would save $134,000 per year in cash operating costs. The c together with its essential aspects. It has been reviewed and purchased by the majority of students thus, this paper is rated 4.8 out of 5 points by the students. In addition to this, the price of this paper commences from £ 99. To get this paper written from the scratch, order this assignment now. 100% confidential, 100% plagiarism-free.
(Ignore income taxes in this problem.) Hinck Corporation is
investigating automating a process by purchasing a new machine for
$520,000 that would have an 8 year useful life and no salvage value. By
automating the process, the company would save $134,000 per year in cash
operating costs. The company’s current equipment would be sold for
scrap now, yielding $22,000. The annual depreciation on the new machine
would be $65,000.
Required:
What is the simple rate of return on the investment to the nearest tenth of a percent?
