Carmen Corporation is considering several investments. Instructions (a) One investment returns $10,000 per year for 5 years

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Carmen Corporation is considering several investments.

Instructions
  (a) One investment returns $10,000 per year for 5 years and provides a return of 10%. What is the cost of this investment?
  (b) Another investment costs $50,000 and returns a certain amount per year for 10 years, providing an 8% return. What amount is received each year?
  (c) A third investment costs $70,000 and returns $11,971 each year for 15 years. What is the rate of return on this investment?

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Accounting Principles

ISBN: 978-0470534793

10th Edition

Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso

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