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Pro-Mate,Inc

Question 54

Multiple Choice

Pro-Mate,Inc.is a producer of athletic equipment.The company is considering the purchase of a machine to produce baseball bats.The machine will cost $60,000 and have a 10-year useful life.The following annual revenues and expenses are projected: Pro-Mate,Inc.is a producer of athletic equipment.The company is considering the purchase of a machine to produce baseball bats.The machine will cost $60,000 and have a 10-year useful life.The following annual revenues and expenses are projected: The machine will have no salvage value.Assume cash flows occur uniformly throughout a year except for the initial investment. The simple rate of return would be about: A) 26.7% B) 16.7% C) 25.0% D) 40.0% The machine will have no salvage value.Assume cash flows occur uniformly throughout a year except for the initial investment. The simple rate of return would be about:


A) 26.7%
B) 16.7%
C) 25.0%
D) 40.0%

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