Multiple Choice
A project that cost $80,000 with a useful life of 5 years is being considered. Straight-line depreciation is being used and salvage value is $5,000. The project will generate annual cash flows of $21,375. The annual rate of return is
A) 15%.
B) 50.3%.
C) 16%.
D) 17%.
Correct Answer:
Verified
Correct Answer:
Verified
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