Acme Company purchases new equipment that costs $160,000 and…
Acme Company purchases new equipment that costs $160,000 and has a useful life of 10 years and a salvage value of $10,000. Acme sells the old equipment that is being replaced for $20,000. The payback period for the initial investment in the new equipment is 4 years. What is the simple rate of return on the investment in the new equipment? Round to one decimal place.