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Question: rl enterprises wants to buy a machine that costs 420000...

Question details

RL Enterprises wants to buy a machine that costs $420,000, has a 20-year life, and has no salvage value. Annual inflows are $210,000 and annual outflows are $160,000. If RL uses the straight-line method to compute depreciation, what is the annual rate of return on this purchase?

  • A :

    13.81%

  • B :

    9.34%

  • C :

    18.13%

  • D :

    6.90%

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