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A project has an annual rate of return of 15%. The project cost $220000, has a 5-year useful life, and has no salvage value. Straight-line

A project has an annual rate of return of 15%. The project cost $220000, has a 5-year useful life, and has no salvage value. Straight-line depreciation is used. The annual net income, exclusive of depreciation, is

$77000.

$60500.

$87450.

$33000.

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