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11. An asset (investment) costs $108,000, has a ten-year useful life and no residual value. The investment generates sales revenue $64,000 per year. Cash
11. An asset (investment) costs $108,000, has a ten-year useful life and no residual value. The investment generates sales revenue $64,000 per year. Cash expenses related to this investment are expected to be around $32,000 per year, and straight-line depreciation expense for this asset is $10,800 per year. Calculate the average rate of return for this investment (round to 00.0%).
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Managerial Accounting
Authors: James Jiambalvo
5th edition
1118078764, 978-1118078761
