What would be the the simple rate of return


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, what would be the the simple rate of return ?

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Accounting Basics: What would be the the simple rate of return
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