Question: Question 11 of 12 < > Current Attempt in Progress Your answer is partially correct. 0.42 / 0.83 Carla Vista Company is considering a

Question 11 of 12 < > Current Attempt in Progress Your answer

Question 11 of 12 < > Current Attempt in Progress Your answer is partially correct. 0.42 / 0.83 Carla Vista Company is considering a long-term investment project called ZIP. ZIP will require an investment of $120,800. It will have a useful life of 4 years and no salvage value. Annual revenues would increase by $79,260, and annual expenses (excluding depreciation) would increase by $40,000. Carla Vista uses the straight-line method to compute depreciation expense. The company's required rate of return is 12%. Compute the annual rate of return. Annual rate of return Determine whether the project is acceptable? Accept the project. 692 % SUPPORT

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