absorplio rate Is 10%, he ost economical plan using the rate of return method. A В Initial cost nual operating costs Annual income Scrap value Useful life 15000 11000 2300 2600 4000 3100 2000 1500 3

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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8.5)

8.5) If the minimum absorption rate is 10%, select the
most economical plan using the rate of return method.
A
В
Initial cost
15000
11000
Annual operating costs
Annual income
2300
2600
4000
3100
Scrap value
Useful life
2000
1500
3
Transcribed Image Text:8.5) If the minimum absorption rate is 10%, select the most economical plan using the rate of return method. A В Initial cost 15000 11000 Annual operating costs Annual income 2300 2600 4000 3100 Scrap value Useful life 2000 1500 3
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