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Wombles Corporation is contemplating purchasing equipment that would increase sales revenues by $478,000 per year...

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Accounting

Wombles Corporation is contemplating purchasing equipment that would increase sales revenues by $478,000 per year and cash operating expenses by $249,000 per year. The equipment would cost $738,000 and have a 9 year life with no salvage value. The annual depreciation would be $82,000. The simple rate of return on the investment is closest to: SHow work please!

19.9%

30.8%

31.0%

11.1%

Answer & Explanation Solved by verified expert
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