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Wayne Company is considering a long-term investment project called ZIP. ZIP will require an investment of $122,000. It will have a useful life of 4
Wayne Company is considering a long-term investment project called ZIP. ZIP will require an investment of $122,000. It will have a useful life of 4 years and no salvage value. Annual revenues would increase by $79,450, and annual expenses (excluding depreciation) would increase by $39,800. Wayne uses the straight-line method to compute depreciation expense. The company's required rate of return is 12%. Compute the annual rate of return. x Annual rate of return 15.45 J% Determine whether the project is acceptable? Accept v the project. Click if you would like to Show Work for this question: Open Show Work
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