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A company purchases a piece of construction equipment for rental purposes. The expected income is $3,100 annually for its useful life of 15 years. Expenses are estimated to be $355 annually. If the purchase price is $25,000 and there is no salvage value (it is worth $0.00 at the end of its useful life), what is the closest prospective rate of return; disregard taxes:

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M91226751

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