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Manal Elkhoshkhany
Manal Elkhoshkhany, Bachelor's Degree
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Pearson Co. is considering the purchase of a $200,000 machine

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Pearson Co. is considering the purchase of a $200,000 machine that is expected to reduce operating cash expenses by $65,000 per year. This machine, which has no salvage value, has an estimated useful life of 5 years and will be depreciated on a straight-line basis. For this machine, the simple rate of return would be:

a- 12.%
b- 10%
c- 32.5%
d- 20%
Hello Jessie

The correct answer is not among the choices. The correct answer is 12.5%

Please check as I believe you mistyped choice A


P.S. Please rate the solution

Thank you
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