The marcus corporation purchased a piece of new equipment


The Marcus Corporation purchased a piece of new equipment in January 2009 for $120,000. The equipment was depreciated using the straight line method over an 8 year life without a salvage value. In December 2009, Marcus reported 2009 cash inflow from the new equipment of $51,000.

Required: Compute the simple rate of return for 2009.

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Cost Accounting: The marcus corporation purchased a piece of new equipment
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