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Dorothy invested $ 2 5 0 , 0 0 0 in a rental property. She earns net revenue of $ 5 0 , 0 0
Dorothy invested $ in a rental property. She earns net revenue of $ per year from the property, If she keeps the property for years, what is her rate of return? Here assume the salvage value is
A company is planning to purchase a new machine to meet increased demand. Both options under consideration have useful lives of years and no salvage value at the end. Cash flows for both are as follows:
tableMachineInitial Cost,tableAnnualmaintenancecostsAnnual incomeA
Use NPV analysis to determine which machine would be a better option. Interest rate is Hint: first compute the net annual benefit annual cost annual income
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