# Simple Rate of Return

(Ignore income taxes in this problem.) Dum Luk & Stoo Pid has invested in a machine that cost \$70,000, that has a useful life of seven years, and that has no salvage value at the end of its useful life. The machine is being depreciated by the straight-line method, based on its useful life. It will have a payback period of four years. Given these data, the simple rate of return on the machine is closest to:
A)

1. 👍 0
2. 👎 0
3. 👁 142

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