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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 $250,000 in a rental property. She earns net revenue of $50,000 per year from the property, If she keeps the property for 10 years, what is her rate of return? (Here, assume the salvage value is 0)
A company is planning to purchase a new machine to meet increased demand. Both options under consideration have useful lives of 10 years and no salvage value at the end. Cash flows for both are as follows:
\table[[Machine,Initial Cost,\table[[Annual],[maintenance],[costs]],Annual income],[A,400,000,20,000,80,000],[B,650,000,30,000,160,000]]
Use NPV analysis to determine which machine would be a better option. Interest rate is 8%.(Hint: first compute the net annual benefit = annual cost -annual income)
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