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11. Lt. Dan Corporation invested $80,000 in a manufacturing equipment. The salvage value of the asset is expected to be $0. The company is expected
11. Lt. Dan Corporation invested $80,000 in a manufacturing equipment. The salvage value of the asset is expected to be $0. The company is expected to add $9,000 per year to the net income. Using the original cost of the asset, the unadjusted rate of return on the investment will be?
Hint: If the problem does not give you enough information to determine the net values, keep your calculations simple!
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