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What the rate of return on the planned investment is

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Reference no: EM132775035

Problem 1: An energy management system that can save $7,500 per year for four (4) years, expenses are $2,000 per year, can be installed at a cost of $20,000. At the en of four(4) it is expected to be sold for $1250. Using the end of year convention, the rate of return on this planned investment is most nearly:

ROR = 6%
ROR = 9.5%
ROR = 9.81%
ROR = 10%

Reference no: EM132775035

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