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Shields Company has gathered the following data on a proposed investment project: (Ignore income taxes.) Investment required in equipment $620,000 Annual cash inflows $75,000 Salvage
Shields Company has gathered the following data on a proposed investment project: (Ignore income taxes.)
| Investment required in equipment | $620,000 |
| Annual cash inflows | $75,000 |
| Salvage value | $0 |
| Life of the investment | 10 years |
| Discount rate | 6% |
| The simple rate of return on the investment is closest to: (Round your answer to the closest interest rate.) |
| 5% | |
| 7% | |
| 2% | |
| 3% |
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International Accounting Standards Regulations Financial Reporting
Authors: Greg N. Gregoriou, Mohamed Gaber
1st Edition
0750669837, 978-0750669832
