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Cardinat Compuny is considering a project that would requlie a $2,$00.000 investment in equipment with a useful life of five years. At the end of
Cardinat Compuny is considering a project that would requlie a $2,$00.000 investment in equipment with a useful life of five years. At the end of five years, the project would terminate and the equipment would be sold for its salvage value oit $200,900. The company/s discount rate is 12%. The project would provide net operating income cach year as follows: Required: If the equiprnent's salvage value was $400,000 instead of $200,000. whot would be the profect's simple rate of return? (Round your onswer to 2 decimal places.)
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