Calculate the annual rate of return

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Reference no: EM13746127

Mecha Oil Company is considering investing in a new oil well. It is expected that the oil well will increase annual revenues by $142,300 and will increase annual expenses by $72,988 including depreciation. The oil well will cost $492,800 and will have a $236,800 salvage value at the end of its 6-year useful life.

Calculate the annual rate of return.

Reference no: EM13746127

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Calculate the annual rate of return : Mecha Oil Company is considering investing in a new oil well. It is expected that the oil well will increase annual revenues by $142,300 and will increase annual expenses by $72,988 including depreciation. The oil well will cost $492,800 and will hav..

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