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Suntand Compaty is considering a long-term imvestment project called ZIP. ZIP will require an imestment of S112.000. it wili have a useful life ot 4

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Suntand Compaty is considering a long-term imvestment project called ZIP. ZIP will require an imestment of S112.000. it wili have a useful life ot 4 years and no salvage value. Armual revenues would increase by $82,000, and annual expense tlexcluding depreciationl would increase by 540.000 . Sunland uses the straight-line method to compute depreciation expense. The companys srequired rate of returnis 2256 Compote the annuai rate of return Arral rate of returm Determine whether the project is acceptable? the sroject

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