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A company is considering purchasing equipment. The equipment will produce the following cash flows: Year 1, $40,000; Year 2, $60,000. The company requires a minimum

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A company is considering purchasing equipment. The equipment will produce the following cash flows: Year 1, $40,000; Year 2, $60,000. The company requires a minimum rate of return of 10%. What is the maximum price the company should pay for this equipment? Select one: a. $ 42,975. b. $ 50,000. c. $100,000. O d. $ 85,951

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