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A company is considering purchasing factory equipment that costs 330,000 and is estimated to have a 10,000 salvage value at the end of its 8
A company is considering purchasing factory equipment that costs 330,000 and is estimated to have a 10,000 salvage value at the end of its 8 year useful life. If the equipment is purchased, annual revenues are expected to be 90,000 and annual operating expenses including depreciation expense are expected to be 70,000. The straight-line method of depreciation is used. What is the annual rate of return?
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