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Wayne Company is considering a long-term investment project called ZIP. ZIP will require an investment...

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Accounting

Wayne Company is considering a long-term investment project called ZIP. ZIP will require an investment of $117,920. It will have a useful life of 4 years and no salvage value. Annual revenues would increase by $79,100, and annual expenses (excluding depreciation) would increase by $40,100. Wayne uses the straight-line method to compute depreciation expense. The companys required rate of return is 13%. Determine whether the project is acceptable?

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