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Business, 03.08.2021 20:20 mobslayer88

Oriental Corporation has gathered the following data on a proposed investment project: Investment in depreciable equipment $ 200,000 Annual net cash flows $ 50,000 Life of the equipment 10 years Salvage value $ 0 Discount rate 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 on the investment would be: Multiple Choice 15% 35% 10% 25%

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