The management of duker corporation is investigating purchasing equipment that would increase sales revenues by $130,000 per year and cash operating expenses by $39,000 per year. the equipment would cost $328,000 and have an 8 year life with no salvage value. the simple rate of return on the investment is closest to: 12.5% 27.7% 38.5% 15.2%

15.2 %

Explanation:

Given:

Cost of the equipment = $ 328,000

Increase in sales revenue = $ 130,000

Operating expenses = $ 39,000

Life of the  equipment = 8 years

thus,

the depreciation = Cost of the equipment / life = $ 328000 / 8 = $ 41,000 per year

Therefore, the net increase in income per year = Increase in revenue - operating expenses - depreciation = $ 130,000 - $ 39,000 - $ 41,000 = $ 50,000

Hence, the return on investment = ( net increase income / Investment ) × 100 = ( 50,000 / 328,000 ) × 100 = 15.24 %

hence, the answer is 15.2%

explanation: doctrine of respondeat superior is a legal doctrine that is commonly used in tort. this principle makes an employer or principal legally responsible for the wrongful acts done by an employee or agent, if such acts occur within the scope of the employment or agency.

answer; erp systems;