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7. Ayayai company... Ayayai Company is considering two new projects, each requiring an equipment investment of $97,300. Each project will last for three years and
7. Ayayai company...
Ayayai Company is considering two new projects, each requiring an equipment investment of $97,300. Each project will last for three years and produce the following cash flows: The equipment will have no salvage value at the end of its three-year life. Ayayai Company uses straight-line depreciation and requires a minimum rate of return of 12%. Present value data are as follows: Click here to view PV tables. (a) Compute the net present value of each project. (For calculation purposes, use 5 decimal places as displayed in the factor table provided. Round answers to 0 decimal places, e.g. 5.275.) Step by Step Solution
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