Determine the rate of return company-equipment proposal

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Reference no: EM13831561

A piece of equipment costing $57,500 is being considered for a production process at Dew Chemicals. The expected benefits per year are $4,500 and estimated salvage value is $10,000. Determine the rate of return the company can get in this equipment proposal. Equipment life = 15 years.

a. 3.58%

b. 5.96%

c. 3.12%

d. 4.92%

Reference no: EM13831561

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