Ivanhoe Company is considering a long$-$term investment project called ZIP. ZIP will require an investment of $$120,000.$ It will have a useful life of $4$ years and no salvage value. Annual revenues would increase by $$80,600,$ and annual expenses $($excluding depreciation$)$ would increase by $$41,000.$ Ivanhoe uses the straight$-$line method to compute depreciation expense. The company's required rate of return is $13\%.$

Compute the annual rate of return.

Annual rate of return $\%$

$$

$2$

Determine whethe the project is acceptable?

$$ the project.