=+Each project requires an investment of $70,000. Straight-line depreciation will be used, and no residual value is

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=+Each project requires an investment of $70,000. Straight-line depreciation will be used, and no residual value is expected. The committee has selected a rate of 12% for purposes ofthe net present value analysis.

Instructions 1. Compute the following:

a. The average rate ofreturn for each investment. Round to one decimal place.

b. The net present value for each investment. Use the present value of $1 table appearing in this chapter.

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