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Joetz Corporation has gathered the following data on a proposed investment project (Ignore income taxes.): Investment required in equipment$ 40,000 Annual cash inflows $ 10,000
Joetz Corporation has gathered the following data on a proposed investment project (Ignore income taxes.):
Investment required in equipment$ 40,000 Annual cash inflows $ 10,000 Salvage value of equipment$ 0 Life of the investment15yearsRequired rate of return10%
The company uses straight-line depreciation on all equipment. Assume cash flows occur uniformly throughout a year except for the initial investment.
The simple rate of return for the investment (rounded to the nearest tenth of a percent) is:
Joetz Corporation has gathered the following data on a proposed investment project (Ignore income taxes.): The company uses straight-line depreciation on all equipment. Assume cash flows occur uniformly throughout a year except for the initial investment. The simple rate of return for the investment (rounded to the nearest tenth of a percent) is: Multiple Choice 12.8% 18.3% 32.4% 26.8%Step by Step Solution
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