Russnak Corporation is investigating automating a process by purchasing a new machine for $505,000 that would have a 10 year useful life and no salvage value. By automating the process, the company would save $145,000 per year in cash operating costs. The company's current equipment would be sold for scrap now, yielding $35,000. The annual depreciation on the new machine would be $50,500. (Ignore income taxes.) Required: Determine the simple rate of return on the investment (Round your answer to 1 decimal place.)

20.1%

Explanation:

The computation of the simple rate of return is shown below;

= (operating cost - depreciation) ÷ (purchase of new machine - scrap value)

= ($145,500  - $50,500) ÷ ($505,000 - $35,000)

= ($94,500) ÷ ($470,000)

= 20.1%

hence, the simple rate of return is 20.1%

The same would be considered and relevant

answer: in the short-run firms will respond by raising the price of turkey.

explanation: initially the long-run equilibrium is at a price of $5 per pound of turkey and a quantity of 50 million pounds per year. now, when webmd claims that a protein found in turkey will increase your expected lifespan by 4 years. the consumers demand for turkey will increase at every price shifting the demand curve to the right from d1 to d2. while, there will be no change in the supply curve in the short-run as it is not possible for producers to adjust supply so quickly. as a result the new equilibrium will occur at a higher price and a higher quantity of turkey.

thus, in the short run firms will respond by increasing the price of turkey, selling more quantity at a higher price and earning economic profits.