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Zhou Fang and Company has just purchased a new piece of equipment, the cost characteristics of which are given below: Purchase cost when new $30,000
Zhou Fang and Company has just purchased a new piece of equipment, the cost characteristics of which are given below: Purchase cost when new $30,000 Annual cost savings $6,000 Salvage value $0 Life of the equipment 15 Years The Company uses a required rate of return of 10% and depreciates equipment using the straight-line method. Refer to the information above. The simple rate of return for the investment (rounded to the nearest tenth of a percent) is: A. 18.0% B. 20.0% C. 13.3% D. 10.0%
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