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Swift Oil Company is considering investing in a new oil well. It is expected that the oil well will increase annual revenues by $125,000 and
Swift Oil Company is considering investing in a new oil well. It is expected that the oil well will increase annual revenues by $125,000 and will increase annual expenses by $85,000 including depreciation. The oil well will cost $430,000 and will have a $10,000 salvage value at the end of its 10-year useful life. Calculate the annual rate of return.
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