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Rundle Rentals can purchase a van that costs $96000: it has an expected useful life of three years and no salvage value. Rundle uses straightline
Rundle Rentals can purchase a van that costs $96000: it has an expected useful life of three years and no salvage value. Rundle uses straightline depreciation. Expected revenue is $47,888 per year. Assume that depreciation is the only expense associated with this investment. Required a. Determine the payback period. Note: Round your answer 1:01 decimal place. b. Determine the unadjusted rate of return based on the average cost ofthe investment. Note: Round your answer 101 decimal place. (i.e., .234 should be entered as 23.4). a. Payback period years b. Unadjusted rate of return 5%
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