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2 January, 05:46

comet powder company has purchased a piece of equipment costing $100,000. It is expected to generate a ten-year stream of benefits amounting to $16,273 per year. Determine the rate of return comet expects to earn from this equipment.

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  1. 2 January, 06:03
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    60.27%

    Step-by-step explanation:

    Purchasing price is $100,000

    Benefit per year is $ 16,273

    Benefit after 10 years = $16,273*10 = $160,273

    Returns in 10 years = $160,273-$100,000 = $60,273

    Rate of return = 60,273/100,000 * 100%

    =60.27%
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