Salt Company is considering investing in a new facility to extract and produce salt. The facility will increase revenues by $220,000, but it will also increase annual expenses by $160,000. The facility will cost $980,000 to build, and it will have a $20,0

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Answer 1

Answer #1

Annual revenues	220000
Less: Annual expenses	160000
Net annual income	60000

Net annual income	60000
Divide by Average Investment	500000	=(980000+20000)/2
Rate of return	12%

answered by: ANURANJAN SARSAM

Answer 2

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