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4. Calculate the actual rate of return on the following proposal and advice management whether or not this is a good investment. Initial cost of

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4. Calculate the actual rate of return on the following proposal and advice management whether or not this is a good investment. Initial cost of equipment $ 85,000, installation cost = $10,000, annual revenue is $60,000, maintenance cost is $25,000, SL = 8 years, (20 points) SV after SL = $5000, Prevailing rate of return is 20%

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