BAM CoIs Evaluating a Project Requiring a Capital Expenditure of $806,250

BAM Co.is evaluating a project requiring a capital expenditure of $806,250.The project has an estimated life of 4 years and no salvage value.The estimated net income and net cash flow from the project are as follows:
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The company's minimum desired rate of return is 12%.The present value of $1 at compound interest of 12% for 1,2,3,and 4 years is 0.893,0.797,0.712,and 0.636,respectively.
Determine: (a)the average rate of return on investment,including the effect of depreciation on the investment,and (b)the net present value.

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(a) $322,500 / 4 = $...

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