What is the annual rate of return on the investment

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Reference no: EM131211459

You have the following information on a potential investment.

Capital investment- 600,000

Estimated useful life- 5 years

Estimated salvage value- zero

Estimated annual net income- 30,000

Required rate of return- 10%

What is the annual rate of return on the investment?

A. 5%

B. 10%

C. 25%

D. 50%

Reference no: EM131211459

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