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Question: A company purchases a piece of manufacturing equipment for rental expected income is $3500 the first semester. Its useful life is 9 years. Expenses are estimated to be $500 semiannually. If the purchase price is $34,000 and there salvage value of $4, 500, what is the prospective rate of return of these investment alternatives? It is a good alternative is the MARR is 5% semiannually?

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