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A company is considering investing in a large piece of equipment that has an estimated useful life of 15 years. This project has an internal
A company is considering investing in a large piece of equipment that has an estimated useful life of 15 years. This project has an internal rate of return of 16% and a payback period of 8.9 years. How would a decrease in the expected salvage value of the equipment in 15 years affect the following for this project? Internal Rate of Return Payback Period A) Decrease Decrease B) No effect Decrease C) Decrease No effect D) Increase No effect E) No effect No effect?
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