Management is considering a $100,000 investment in a project with a 5-year life and no residual value.

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Management is considering a $100,000 investment in a project with a 5-year life and no residual value. If the total income from the project is expected to be

$60,000 and recognition is given to the effect of straight-line depreciation on the investment, the average rate of return is: LO6 A. 12% C. 60%

B. 24% D. 75%

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Accounting

ISBN: 9780324025422

20th Edition

Authors: Carl S. Warren, James M. Reeve, Philip E. Fess

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Question Posted: Jun 28, 2024 10:06 AM

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Management is considering a $100,000 investment in a project with a 5-year life and no residual value.

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Accounting

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