Purvell Corporation Has Just Acquired a New Machine with the Following

Multiple Choice

Purvell Corporation has just acquired a new machine with the following characteristics (Ignore income taxes.) : The company uses straight-line depreciation and a $5,000 salvage value. Assume cash flows occur uniformly throughout a year except for the initial investment and the salvage at the end of the project.
The simple rate of return would be closest to:

A) 30.0%
B) 17.5%
C) 18.75%
D) 12.5%