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Martin's Auto Repair Service is considering the purchase of a new piece of equipment that costs $5,706. The equipment would allow Martin's to generate additional revenue of $1,800 per year for four years. At what interest rate would this investment break even? 6.0% 7.8% 8.5% 10.0%

Martin's Auto Repair Service is considering the purchase of a new piece of equipment that costs $5,706. The equipment would allow Martin's to generate additional revenue of $1,800 per year for four years. At what interest rate would this investment break even? 6.0% 7.8% 8.5% 10.0%

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Martin's Auto Repair Service is considering the purchase of a new piece of equipment that costs $5,706. The equipment would allow Martin's to generate additional revenue of $1,800 per year for four years. At what interest rate would this investment break even? 6.0% 7.8% 8.5% 10.0%
Transcribed Image Text:Martin's Auto Repair Service is considering the purchase of a new piece of equipment that costs $5,706. The equipment would allow Martin's to generate additional revenue of $1,800 per year for four years. At what interest rate would this investment break even? 6.0% 7.8% 8.5% 10.0%
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