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What is unadjusted rate of return base on average investment

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Problem

Butch's Barbecue thinks that offering delivery will increase their sales. Butch's is considering whether to purchase a used delivery truck costing $12,000. Additional net income from the delivery service will be $1,400 per year. The truck will last approximately 5 years. What is the unadjusted rate of return based on the average investment?

About 58.3%
About 11.7%
About 23.3%
About 857.1%

Reference no: EM131820978

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