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You have the following information on a potential investment. Capital investment $480,000 Estimated useful life 8 years Estimated salvage value zero Estimated annual net income
You have the following information on a potential investment. Capital investment $480,000 Estimated useful life 8 years Estimated salvage value zero Estimated annual net income $18,000 Required rate of return 10% What is the annual rate of return on the investment (to the nearest percent)? 32.5% 3.8% 7.5% 16.3%
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