Business, 21.12.2019 00:31, ramirezzairap2u4lh

Joetz corporation has gathered the following data on a proposed investment project (ignore income taxes.):
investment required in equipment $ 30,000
annual cash inflows $ 6,000
salvage value of equipment $ 0
life of the investment 15 years
required rate of return 10 %
the company uses straight-line depreciation on all equipment. assume cash flows occur uniformly throughout a year except for the initial investment.
the simple rate of return for the investment (rounded to the nearest tenth of a percent) is:
multiple choice
a. 16%
b. 18%
c. 20%
d. 22%

Answers: 1

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Joetz corporation has gathered the following data on a proposed investment project (ignore income ta...