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A project has an initial cost of $160,000 and an estimated salvage value after 15 years of $75,000. Estimated average annual receipts are $30,000. Estimated
A project has an initial cost of $160,000 and an estimated salvage value after 15 years of $75,000. Estimated average annual receipts are $30,000. Estimated average annual disbursements are $16,000. Assuming that annual receipts and distributions will be uniform for the 15 years, compute the prospective rate of return before taxes.
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