Compute the average rate of return

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Problem - Management is considering a $100,000 investment in a project with a five-year life and no residual value. If the total income from the project is expected to be $60,000 and straight-line depreciation is used, compute the average rate of return?

a. 12%.

b. 24%.

c. 60%.

d. 75%.

Reference no: EM132767680

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