Mussina Company had an investment which cost $260,000 and had a salvage value at the end of its useful life of zero. If Mussina's expected annual net income is $15,000, the annual rate of return is:

Question 4 options:

11.5% 15% 5.8% 9.8%

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Question 5(1 point)

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Colaw Company is considering buying equipment for $80,000 with a useful life of five years and an estimated salvage value of $4,000. If annual expected income is $7,000, the denominator in computing the annual rate of return is

Question 5 options:

$40,000 $84,000 $80,000 $42,000