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Math Help - annual rate of return?

  1. #1
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    annual rate of return?

    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)



    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

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  2. #2
    Member dokrbb's Avatar
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    Re: annual rate of return?

    ... and did you try to do something, there are some terms you don't understand?

    dokrbb
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