Pepper company is using the annual rate of return to evaluate a potential investment. the original investment required is $120,000, and the investment’s salvage value is $20,000. what is the average investment that pepper will use when computing the annual rate of return?
a : $60,000
b : $70,000
c : $50,000
d : cannot be determined unless the useful life of the project is known.
Answers: 2
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