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1. CJ Manufacturing purchased some equipment 3 years ago. The company's required rate of return is 12%, and the net present value of the project
1. CJ Manufacturing purchased some equipment 3 years ago. The company's required rate of return is 12%, and the net present value of the project was $(900). Annual cost savings were: $10,000 for year 1; $8,000 for year 2; and $6,000 for year 3. The amount of the initial investment was Year Present Value of 1 at 12% PV of an Annuity of 1 at 12% 1 .893 .893 2 .797 1.690 3 .712 2.402 A:$18678 B:$20478 C:$18316 D:$20116 2
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