Average Rate of Return Lakeland Company is considering the

Last updated: 4/12/2024

Average Rate of Return Lakeland Company is considering the purchase of equipment for 175 000 The equipment will expand the Company s production and increase revenue by 40 000 per year Annual cash operating expenses will increase by 12 000 The equipment s useful life is 10 years with no salvage value Lakeland uses straight line depreciation The income tax rate is 25 What is the average rate of return on the investment Do not use negative signs with your answers Increase in revenue 0 Increase in expenses 0 Pretax income from investment 0 Income tax expense 0 Net income from investment 0 Round answer to the nearest whole percentage if applicable Average rate of return on investment