contestada

belmont corp is considering the purchase of a new piece of equipment. the annual cost savings from the equipment would be $200,000 the equipment will have an initial cost of $1,000,000 and have an 20 year life. if there is no salvage value of the equipment, what is the simple rate of return?

Respuesta :

If there is no equipment salvage value, the simple return rate is 20%.

What is a simple return rate?

The initial investment value is subtracted from the investment's current value, and the result is divided by the original investment value to determine a simple rate of return. The result is multiplied by 100 to be reported as a percentage.

The initial investment value is subtracted from the investment's current value, and the result is divided by the original investment value to determine a simple rate of return. The result is multiplied by 100 to be reported as a percentage.

What is equipment salvage value?

The estimated value of an asset when it is no longer useful to your company is known as salvage value.

For instance, if a company's machinery has a lifespan of five years but only has a worth of $5,000 at the conclusion of that time, the salvage value is $5,000.

To learn more about simple return rate click on the given:

https://brainly.com/question/29417825

To learn more about salvage value click on the given:

https://brainly.com/question/29430156

#SPJ4