Question: Do It! Review 12-5 Wayne Company is considering a long-term investment project called ZIP. ZIP will require an investment of $120,400. It will have a

Do It! Review 12-5 Wayne Company is considering a long-term investment project called ZIP. ZIP will require an investment of $120,400. It will have a useful life of 4 years and no salvage value. Annual revenues would increase by $79,032, and annual expenses (excluding depreciation) would increase by $39,300. Wayne uses the straight-line method to compute depreciation expense. The company's required rate of return is 13%. Compute the annual rate of return Annual rate of return Determine whether the project is acceptable? the project
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