A company is considering a capital investment.

Initial investment $800,000

Annual net income 60,000

Annual cash inflow 220,000

Estimated useful life 5 years

Salvage value -0-

The annual rate of return for the investment is

a. 7.5%

b. 15.0%

c. 27.5%

d. 55.0%

A company is considering a capital investment. Initial investment $800,000 Annual net income 60,000 Annual cash inflow 220,000 Estimated useful life 5 years Salvage value -|- The annual rate of return for the investment is a. 7.5% b. 15.0% c. 27.5% d. 55.0%