Cheyenne Company is considering investing in a new facility to extract and produce salt. The facility will increase revenues by $225,500, but it will also increase annual expenses by $165,506. The facility will cost $985,000 to build, and it will have a $25,000 salvage value at the end of its useful life. Calculate the annual rate of return on this facility. (Round answer to 2 decimal places, e.g. 52.75.) Annual rate of return %
Cheyenne Company is considering investing in a new facility to extract and produce salt. The facility will increase revenues by $225,500, but it will also increase annual expenses by $165,506. The facility will cost $985,000 to build, and it will have a $25,000 salvage value at the end of its useful life. Calculate the annual rate of return on this facility. (Round answer to 2 decimal places, e.g. 52.75.) Annual rate of return %
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 17EB: Caduceus Company is considering the purchase of a new piece of factory equipment that will cost...
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![Cheyenne Company is considering investing in a new facility to extract and produce salt. The facility will increase revenues by
$225,500, but it will also increase annual expenses by $165,506. The facility will cost $985,000 to build, and it will have a $25,000
salvage value at the end of its useful life.
Calculate the annual rate of return on this facility. (Round answer to 2 decimal places, e.g. 52.75.)
Annual rate of return
%](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F508aedf3-1db7-4341-90e5-75f65307f7e9%2F7ec571ed-d209-42e1-a034-286514aa8986%2Fak4iif8_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Cheyenne Company is considering investing in a new facility to extract and produce salt. The facility will increase revenues by
$225,500, but it will also increase annual expenses by $165,506. The facility will cost $985,000 to build, and it will have a $25,000
salvage value at the end of its useful life.
Calculate the annual rate of return on this facility. (Round answer to 2 decimal places, e.g. 52.75.)
Annual rate of return
%
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