An industrial firefighting truck costs $100,000. Savings in insurance premiums and uninsured losses from the acquisition and operation of this equipment is estimated at $60,000/yr. Salvage value of...

Solve for the rate of return and Explain

Extracted text: An industrial firefighting truck costs $100,000. Savings in insurance premiums and uninsured losses from the acquisition and operation of this equipment is estimated at $60,000/yr. Salvage value of the apparatus after 5 yrs. is expected to be $20,000. A full-time driver during operating hours will accrue an added cost of $10,000/yr. What would the rate of return be on this investment?