Oriental Corporation has gathered the following data on a proposed investment project: Investment in depreciable equipment$200,000 Annual net cash flows $50,000 Life of the equipment 10yearsSalvage value$0 Discount rate 10%The company uses straight-line depreciation on all equipment. Assume cash flows occur uniformly throughout a year except for the initial investment.The simple rate of return on the investment would be:
A. 15%
B. 10%
C. 25%
D. 35%
Answer: A
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