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A company projects an increase in net income of $30,000 each year for the next five years if it invests $300,000 in new equipment. The

A company projects an increase in net income of $30,000 each year for the next five years if it invests $300,000 in new equipment. The equipment has a five-year life and an estimated salvage value of $100,000. What is the annual rate of return on this investment?

A) 15%

B) 10%

C) 20%

D) 25%

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