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MsCorrine MsCorrine
wrote...
Posts: 355
6 years ago
Concose Park Department is considering a new capital investment. The following information is available on the investment. The cost of the machine will be $330,000. The annual cost savings if the new machine is acquired will be $85,000. The machine will have a 5-year life, at which time the terminal disposal value is expected to be $32,000. Concose Park Department is assuming no tax consequences. If Concose Park Department has a required rate of return of 11%, which of the following is closest to the present value of the project?
A) $8,245
B) $24,836
C) $3,136
D) $15,840
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nnnnnn
wrote...
Posts: 173
6 years ago
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MsCorrine Author
wrote...
6 years ago
Makes more sense now, TY
wrote...
3 years ago
thank you, this helps
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