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  3. 1. (2.5 points) does the following project have a

1. (2.5 points) Does the following project have a positive or negative rate of return?...

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Accounting

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1. (2.5 points) Does the following project have a positive or negative rate of return? Show how this is known to be true. Investment Cost Net Benefits Salvage Useful Life $3,500 S275 in Year 1, increasing by $200 per year $100 4 years (2.5 points) An investment of $5000 in Biotech common stock proved to be very profitable. At the end of 3 years the stock was sold for $25,000. What was the rate of return on investment? 2

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