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Wayne Company is considering a long-term investment project called ZIP. ZIP will require an investment of $123,000. 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 $123,000. It will have a useful life of 4 years and no salvage value. Annual revenues would increase by $79, 500, and annual expenses (excluding depreciation) would increase by $40, 900. Wayne uses the straight-line method to compute depreciation expense. The company's required rate of return is 10%. Compute the annual rate of return. (Round answer to 0 decimal places, e.g. 15%.) Annual rate of return % Determine whether the project is acceptable? the project
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