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Joetz Corporation has gathered the following data on a proposed investment project (Ignore income taxes.): Investment required in equipment Annual cash inflows. Salvage value of equipment Life of the investment Required rate of return The company uses straight-line depreciation on all equipment. Assume cash flows occur uniformly throughout a year except for th initial investment. Multiple Choice The simple rate of return for the investment (rounded to the nearest tenth of a percent) is: O O 13.3% $ 30,000 $ 6,000 $0 18.0% 15 years 10% 10.0%

Joetz Corporation has gathered the following data on a proposed investment project (Ignore income taxes.): Investment required in equipment Annual cash inflows. Salvage value of equipment Life of the investment Required rate of return The company uses straight-line depreciation on all equipment. Assume cash flows occur uniformly throughout a year except for th initial investment. Multiple Choice The simple rate of return for the investment (rounded to the nearest tenth of a percent) is: O O 13.3% $ 30,000 $ 6,000 $0 18.0% 15 years 10% 10.0%

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Joetz Corporation has gathered the following data on a proposed investment project (Ignore income taxes.): Investment required in equipment Annual cash inflows Salvage value of equipment Life of the investment Required rate of return Multiple Choice The company uses straight-line depreciation on all equipment. Assume cash flows occur uniformly throughout a year except for the initial investment. O The simple rate of return for the investment (rounded to the nearest tenth of a percent) is: O 20.0% 13.3% $ 30,000 $ 6,000 18.0% $0 10.0% 15 years 10%
Transcribed Image Text:Joetz Corporation has gathered the following data on a proposed investment project (Ignore income taxes.): Investment required in equipment Annual cash inflows Salvage value of equipment Life of the investment Required rate of return Multiple Choice The company uses straight-line depreciation on all equipment. Assume cash flows occur uniformly throughout a year except for the initial investment. O The simple rate of return for the investment (rounded to the nearest tenth of a percent) is: O 20.0% 13.3% $ 30,000 $ 6,000 18.0% $0 10.0% 15 years 10%
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