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A firm, whose cost of capital is 10%, may acquire equipment for $113,479 and rent it to someone for a period of 5 years. IF
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A firm, whose cost of capital is 10%, may acquire equipment for $113,479 and rent it to someone for a period of 5 years.
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IF the firm charges $36,290 annually to rent the equipment, what are the net present value and the internal rate of return on the investment?Should the firm acquire the equipment?
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If the equipment has not estimated RESIDUAL value, what must be the minimum annual rental charge for the firm to earn the required 10% on the investment?
A firm, whose cost of capital is 10%, may acquire equipment for $113,479 and rent it to someone for a period of 5 years.
-
IF the firm charges $36,290 annually to rent the equipment, what are the net present value and the internal rate of return on the investment?Should the firm acquire the equipment?
-
If the equipment has not estimated RESIDUAL value, what must be the minimum annual rental charge for the firm to earn the required 10% on the investment?
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