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I'm having a hard time figuring out just the Average rate of return due to the depreciation being included in the problem. Is this correct
I'm having a hard time figuring out just the Average rate of return due to the depreciation being included in the problem. Is this correct or wrong?
CAPBUD Capital Budgeting Data Section 47,500 Cost of investment Estimated life of investment Estimated salvage value Estimated annual net cash inflow Required rate of return Annual depreciation Answer Section $500,000 10 years $25,000 $110,000 20.00% $47,500.00 Payback period Accounting (average) rate of return Net present value Internal rate of return 4.55 years 23.81% ($38,828) 17.95%Step by Step Solution
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