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Finlay Corporation is investigating automating a process by purchasing a machine for $225,000 that would have a 9 year useful life and no salvage value. By automating the process, the company would save $54,000 per year in cash operating costs. The new machine would replace some old equipment that would be sold for scrap now, yielding $24,000. The annual depreciation on the new machine would be $25,000.what the simple rate of return on the investment is closest to:

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M978693

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