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Problem - Annual Rate of Return Circle one correct letter. Each correct answeris worth_ _point(s). A company is considering purchasing new equipment with the following

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Problem - Annual Rate of Return Circle one correct letter. Each correct answeris worth_ _point(s). A company is considering purchasing new equipment with the following variables: Cost $900,000 Life 5 years $300,000 Salvage Value Net Income $135,000 1. What is the annual rate of return on this investment? a. 15.0% b. 22.5% C. 30.0% Problem - Annual Rate of Return, Continued. Circle one correct letter. Each correct answer is worth point(s). Mussina Company had an investment with the following factors Cost $250,000 Life 0 Salvage Value 0 Net Income $15,000 2. What is the annual rate of return on this investment? a. 6.0%. b. 10.2% c. 12.0%. Problem - Internal Rate of Return Circle one correct letter. Each correct answeris worth point(s). An investment project had the following factors: Internal rate of return factor 4.0 Equal annual cash inflows $18,000 a. 1. What is the original investment the project: $18,000. b. $4,500. $72,000. C

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