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Newport Corporation is considering investing $65,000 in equipment to produce a new product. The useful service life of the equipment is estimated to be ten

Newport Corporation is considering investing $65,000 in equipment to produce a new product. The useful service life of the equipment is estimated to be ten years, with no salvage value. Straight-line depreciation is used. The company estimates that production and sale of the new product will increase net income by $6,500 per year. The expected rate of return on average investment in this equipment is: Multiple Choice 15%. 20%. 7.5%

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