Multiple Choice
A company projects an increase in net income of $30,000 each year for the next five years if it invests $300,000 in new equipment. The equipment has a five-year life and an estimated salvage value of $100,000. What is the annual rate of return on this investment?
A) 10%
B) 15%
C) 20%
D) 25%
Correct Answer:
Verified
Correct Answer:
Verified
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