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Calculate the Expected Rate of Return. Show all work. Assuming you have some construction background and considering to purchase the used Cat 990 Wheel Loader
Calculate the Expected Rate of Return. Show all work. Assuming you have some construction background and considering to purchase the used Cat 990 Wheel Loader for investment. If you purchase and rent it out, it will produce cash inflows of $32,500, $38,470, $40,805, and $41,268 a year for the next four years, respectively (assume that the Wheel Loader will last for 4 years and will no longer work after 4 years). The discount rate is 6% and the selling price is $190,000.
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