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The management at Mikes Camping Supply would like to invest in a new project that will generate $50,000 of income for the first three years

The management at Mike’s Camping Supply would like to invest in a new project that will generate $50,000 of income for the first three years and $70,000 for the seven years afterward. The cost of the project includes a $300,000 buy in and will have a residual value of $15,000. Calculate the average rate of return for the project.

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Inflow during the first three years 500003 150000 Inflow during the following seven years 700007 ... blur-text-image

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