Do It! Review 12-5 Wayne Company is considering a long-term investment project called ZIP ZIP will require an investment of $121,200. It will have a useful life of 4 years and no salvage value. Annual revenues would increase by $80,696, and annual expenses (excluding depreciation) would increase by $40,700. Wayne uses the straight-line method to compute depreciation expense. The company's required rate of return is 13%. Compute the annual rate of return. Annual rate of retum % Determine whether the project is acceptable? the project