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You have the following information on a potential investment. Capital investment- 600,000 Estimated useful life- 5 years Estimated salvage value- zero Estimated annual net income-
You have the following information on a potential investment.
Capital investment- 600,000
Estimated useful life- 5 years
Estimated salvage value- zero
Estimated annual net income- 30,000
Required rate of return- 10%
What is the annual rate of return on the investment?
A. 5%
B. 10%
C. 25%
D. 50%
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Accounting And Finance For Non Finance Managers
Authors: Jai Kumar Batra
1st Edition
9352806964, 978-9352806966
