A project is estimated to cost 110,000, last 8 years and have a 15,000 salvage value. The annual gross income is expected to average 24,000 and annual expenses, excluding depreciation, will total...

A project is estimated to cost 110,000, last 8 years and have a 15,000 salvage
value. The annual gross income is expected to average 24,000 and annual
expenses, excluding depreciation, will total 6,000. If capital is earning 10% before
income taxes, determine if this is a desirable investment using:

1. The rate of return method :
2. Annual Worth Method: