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Title: Walker & Campsey wants to invest in a new computer system, and management has narrowed the choice to ... Post by: Nikolas on Aug 15, 2023 Walker & Campsey wants to invest in a new computer system, and management has narrowed the choice to Systems A and B. System A requires an up-front cost of $120,000, after which it generates positive after-tax cash flows of $80,000 at the end of each of the next 2 years. System B also requires an up-front cost of $120,000, after which it generates positive after-tax cash flows of $58,000 at the end of each of the next 3 years. The company’s cost of capital is 12%. Based on the equivalent annual annuity, which system will be chosen? ▸ A for $8,038.03 ▸ B for $8,038.03 ▸ A for $8,996.18 ▸ B for $8,996.18 Title: Re: Walker & Campsey wants to invest in a new computer system, and management has narrowed the choice to ... Post by: 12Jfiscus on Aug 15, 2023 Content hidden
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