The charles company is planning to invest 450000 in factory


Question - The Charles Company is planning to invest $450,000 in a factory machine. The machine is expected to last four years and have a salvage value of $50,000. Yearly net cash inflows (before taxes) from the machine are estimated at $140,000. Using straight-line depreciation and a 50% tax rate, calculate the unadjusted rate of return?

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