Joetz Corporation has gathered the following data on a proposed investment project (Ignore income taxes.):
Investment required in equipment $37,000
Annual cash inflows $8,800
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 is:
Answers: 1
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Joetz Corporation has gathered the following data on a proposed investment project (Ignore income ta...
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