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Eddy Company has an opportunity to purchase an asset that will cost the company $25,000. The asset is expected to add $7,500 per year to

Eddy Company has an opportunity to purchase an asset that will cost the company $25,000. The asset is expected to add $7,500 per year to the company's net income. Assuming the asset has a five-year useful life and zero salvage value, the unadjusted rate of return will be:

a.3%.

b.10%.

c.30%.

d.20%.

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