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Suppose a Machine That Has a Useful Life of Only

Question 10

Multiple Choice

Suppose a machine that has a useful life of only one year costs $5,000,and that the additional revenue from the output of this machine is expected to be $6,100 after paying the operating costs.The expected rate of return on this machine is


A) 25%.
B) 22%.
C) 18%.
D) 12%.
E) 10%.

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