# Thread: annual rate of return?

1. ## 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

2. ## Re: annual rate of return?

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

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