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What the unadjusted rate of return will be

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Reference no: EM132805796

Problem 1: Eddy Company has an opportunity to purchase an asset that will cost the company $25,000. The asset is expected to add $7,500 per year to the company's net income. Assuming the asset has a five-year useful life and zero salvage value, the unadjusted rate of return will be:

a. 3%.
b. 10%.
c. 30%.
d. 20%.

Reference no: EM132805796

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