Average Rate of Return—Cost Savings Maui Fabricators Inc. is considering an investment in equipment that will replace di

[answerhappygod]

Average Rate of Return—Cost Savings
Maui Fabricators Inc. is considering an investment in equipment
that will replace direct labor. The equipment has a cost of
$143,000 with a $12,000 residual value and a ten-year life. The
equipment will replace one employee who has an average wage of
$37,090 per year. In addition, the equipment will have operating
and energy costs of $6,940 per year.
Determine the average rate of return on the equipment, giving
effect to straight-line depreciation on the investment. If
required, round to the nearest whole percent.
fill in the blank 1 %