# 2. The management of Nixon Corporation is investigating purchasing equipment that would cost $536,000 and have... ###### Question: 2. The management of Nixon Corporation is investigating purchasing equipment that would cost$536,000 and have a 7 year life with no salvage value. The equipment would allow an expansion of capacity that would increase sales revenues by $373,000 per year and cash operating expenses by$215,500 per year. (Ignore income taxes.) Required: Determine the simple rate of return on the investment. (Round your answer to 1 decimal place.) Simple rate of return
The management of Truelove Corporation is considering a project that would require an initial investment of $349,000 and would last for 7 years. The annual net operating income from the project would be$29,400, including depreciation of $45,800. At the end of the project, the scrap value of the project's assets would be$28,400. (Ignore income taxes.): Required: Determine the payback period of the project. (Round your answer to 2 decimal places.) Payback period years