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Adams Company is considering investing in two new vans that are expected to generate combined cash inflows of $31,500 per year. The vans combined purchase
Adams Company is considering investing in two new vans that are expected to generate combined cash inflows of $31,500 per year. The vans combined purchase price is $97,500. The expected life and salvage value of each are seven years and $20,100, respectively. Adams has an average cost of capital of 16 percent. (PV of $1 and PVA of $1) (Use appropriate factor(s) from the tables provided.)
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