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Question - Adams Rentals can purchase a van that costs $84,000; it has an expected useful life of four years and no salvage value. Adams uses straight-line depreciation. Expected revenue is $35,028 per year. Assume that depreciation is the only expense associated with this investment.
Required -
-Determine the payback period.
-Determine the unadjusted rate of return based on the average cost of the investment.
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