# The new machine cost $320,000 16 years of useful life no salvage value new machine cost $54,000...

## Question:

The new machine cost $320,000 16 years of useful life no salvage value new machine cost $54,000 per year to operate and maintain saves $95,000 per year in labor and other costs old machine can be sold now for scrap for the $32,000.

The simple rate of return on the new machine is _____.

## Simple Rate of Return:

The simple rate of return is a performance evaluation metric that shows the relationship between average net income and the initial investment of the asset. It is calculated by dividing the net income by the initial investment.

## Answer and Explanation: 1

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View this answerThe question provides the following information -

- Annual savings = $95,000
- Annual costs = $54,000
- New machine cost = $320,000

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