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

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Accounting

Cullumber Company is considering a long-term investment project called ZIP. ZIP will require an investment of $120,000. It will have a useful life of 4 years and no salvage value. Annual revenues would increase by $79,900, and annual expenses (excluding depreciation) would increase by $40,300. Cullumber uses the straight-line method to compute depreciation expense. The company's required rate of return is 13%.
Compute the annual rate of return.
Annual rate of return %
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