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Compute the unadjusted rate of return

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Reference no: EM132625924

Problem - the Unadjusted Rate of Return

Assumptions:

Average annual net income = $100,000
Original investment amount = $500,000
Unrecovered asset cost at the end of useful life (salvage value) = $50,000

Question 1: Compute the Unadjusted Rate of Return using the original investment amount.

Question 2: Compute the Unadjusted Rate of Return using the average investment method

Reference no: EM132625924

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