Planned investment

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An energy management system that can save $7,500 per year for four (4) years, expenses are $2,000 per year, can be installed at a cost of $20,000. At the end of four (4) it is expected to be sold for $1,250. Using the end of year convention, the rate of return on this planned investment is most nearly:

1. ROR = 9.81%
2. ROR = 9.5%
3. ROR = 6%
4. ROR = 10%

Reference no: EM13336698

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