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You have the following information on a potential investment. Capital investment - $80,000 Estimated useful life - 5 years Estimated salvage value - 5000 Estimated

You have the following information on a potential investment. Capital investment - $80,000 Estimated useful life - 5 years Estimated salvage value - 5000 Estimated annual net cash inflow - $6375 What is the annual rate of return on the investment (to the nearest percent)?

a. 15 %

b. 50.3%

c. 16%

d. 17%

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