Q2: A warehouse can be built with an initial cost of $60000, which may last for 20 years with annual revenues of $5000 and a salvage value of $30000. Calculate the rate of return on this investment. (Try i 5% and 10%).

Q2: A warehouse can be built with an initial cost of $60000, which may last for 20 years with annual revenues of $5000 and a salvage value of $30000. Calculate the rate of return on this investment. (Try i 5% and 10%).

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Q2: A warehouse can be built with an initial cost of $60000, which may last
for 20 years with annual revenues of $5000 and a salvage value of
$30000. Calculate the rate of return on this investment. (Try i 5% and
10%).

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