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What is the rate of return on the purchase

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Reference no: EM132751941

A company is considering purchasing an $85,000 piece of equipment that will save them $20,000 per year for five years. In the final year, they anticipate being able to sell (salvage) the old equipment for $15,000.

Problem 1: What is the rate of return on this purchase?

Reference no: EM132751941

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