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Sunland Company is considering a long-term investment project called ZIP. ZIP...

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Accounting

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Sunland Company is considering a long-term investment project called ZIP. ZIP will require an investment of $140,000. It will have a useful life of 4 years and no salvage value. Annual revenues would increase by $81,100, and annual expenses (excluding depreciation) would increase by $39,100. Sunland uses the straight-line method to compute depreciation expense. The company's required rate of return is 7%. Compute the annual rate of return. Annual rate of return Determine whether the project is acceptable? the project

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