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    Computation of Return on Investment

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    Problem: A company decides to buy new equipment for $10,000 with an expected useful life of 4 years. At the end of each of the 4 years, the cash flow from this equipment is expected to be $4000. the rate of return in 8%, what is the ROI?

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    Solution Summary

    This explains the computation of Return on Investment by an example

    $2.49

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