Hartong corporation is contemplating purchasing equipment that would increase sales revenues by $185,000 per year and cash operating expenses by $89,000 per year. the equipment would cost $416,000 and have a 8 year life with no salvage value. the annual depreciation would be $52,000. the simple rate of return on the investment is closest to: a. 23.8%b. 12.5%c. 10.6%d. 23.1%

The simple rate of return on the investment is closest to: C. 10.6%

Explanation:

In Hartong Corporation:

Increasing net income = Increase sales revenues - Cash operating expenses - Annual depreciation expense = $185,000 - $89,000 - $52,000 = $44,000

This is the net income from the equipment per year

Return on the investment (ROI) is calculated by using following formula:

ROI = (Net income/Cost of investment )x 100%

Cost of investment  = Cost of equipment = $416,000

ROI = ($44,000/$416,000) x 100% = 10.6%

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c

explanation:

c because the item on a bank statement is also referred to as an account statement. in addition, it provides the beginning balance, ending balance, statement date, transaction date for each transaction, payee, customer name and address, statement period, the account holder's account number, and the bank's customer service number