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A company purchases a piece of construction equipment for rental purposes. The expected income is $3100 annually for its useful life of 24 years. Expenses
A company purchases a piece of construction equipment for rental purposes. The expected income is $3100 annually for its useful life of 24 years. Expenses are estimated to be $355 annually. If the purchase price is $25,000 and there is no salvage value, what is the prospective rate of return, neglecting taxes? MARR for the company is 15%. Is this an attractive investment? pls show the steps
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