Annual rate of return based on average investment

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Reference no: EM131622156

ABC Corp's proposed project with an estimated life of 20 years and salvage value of P100,000 requires an initial investment of P 1,000,000. It will yield yearly cash inflow of P100,000. Straight line method will be used. The annual rate of return based on average investment is a)answer not given b)11% c)10.5% d) 10%.

Reference no: EM131622156

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