Find the annual rate of return expected on this equipment

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Question - A company is considering purchasing factory equipment that costs $480000 and is estimated to have no salvage value at the end of its 8-year useful life. If the equipment is purchased, annual revenues are expected to be $231000 and annual operating expenses exclusive of depreciation expense are expected to be $39000. The straight-line method of depreciation would be used. If the equipment is purchased, find the annual rate of return expected on this equipment?

Reference no: EM132779379

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