Problema project has an initial cost of 150000 and an, Ask an Expert

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Problem:

A project has an initial cost of $150,000 and an estimated salvage value after 13 years of $90,000. Estimated average annual receipts are $27,000. Estimated average annual disbursements are $16,000.

Assume that annual receipts and disbursements will be uniform; compute the prospective rate of return before taxes. Elucidate in detail and specify all computation and methods.

A) 4.6%

B) 5.8%

C) 3.5%

D) 5.1%

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M91146751

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