20000, Salvage your cost of operation per year is 3500 and your revenues per year is 9000, what is the approximate rate of return (ROR) on the investment?

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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A small machine has an initial cost of 20000, a salvage value of 2000 and a life of 10 years. If
your cost of operation per year is 3500 and your revenues per year is 9000, what is the
approximate rate of return (ROR) on the investment?
Transcribed Image Text:A small machine has an initial cost of 20000, a salvage value of 2000 and a life of 10 years. If your cost of operation per year is 3500 and your revenues per year is 9000, what is the approximate rate of return (ROR) on the investment?
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