Sager Industries is considering an investment in equipment that will replace direct labor. The equipment...
50.1K
Verified Solution
Link Copied!
Question
Accounting
Sager Industries is considering an investment in equipment that will replace direct labor. The equipment has a cost of $95,000 with a $8,000 residual value and a five-year life. The equipment will replace three employees who has an average total wages of $30,740 per year. In addition, the equipment will have operating and energy costs of $9,220 per year.
Determine the average rate of return on the equipment, giving effect to straight-line depreciation on the investment. ________%
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
- Unlimited Question Access with detailed Answers
- Zin AI - 3 Million Words
- 10 Dall-E 3 Images
- 20 Plot Generations
- Conversation with Dialogue Memory
- No Ads, Ever!
- Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Other questions asked by students
StudyZin's Question Purchase
1 Answer
$0.99
(Save $1 )
One time Pay
- No Ads
- Answer to 1 Question
- Get free Zin AI - 50 Thousand Words per Month
Best
Unlimited
$4.99*
(Save $5 )
Billed Monthly
- No Ads
- Answers to Unlimited Questions
- Get free Zin AI - 3 Million Words per Month
*First month only
Free
$0
- Get this answer for free!
- Sign up now to unlock the answer instantly
You can see the logs in the Dashboard.