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Do It Review 24-5 Wayne Company is considering a long-term investment project called ZIP ZIP will require an investment of $122,920. It will have a
Do It Review 24-5 Wayne Company is considering a long-term investment project called ZIP ZIP will require an investment of $122,920. It will have a useful life of 4 years and no salvage value. Annual revenues would increase by $79,800, and annual expenses (excluding depreciation) would increase by $40,200. Wayne uses the straight-line method to compute depreciation expense. The company's required rate of return is 11%. Compute the annual rate of return. (Round answer to 0 decimal places, e.g. 15%.) Annual rate of return Determine whether the project is acceptable? the project
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