A company projects an increase in net income of $30,000 each year for the next five years if it invests $300,000 in new equipment. The equipment has a five-year life and an estimated salvage value of $100,000. What is the annual rate of return on this investment?  

 

Answer rating: 100% (QA)

To calculate the annual rate of return on the investment we can use the formula for the average annu... View the full answer