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Aqua Fresh Corporation is reviewing an investment proposal. The initial cost as well as other related data for each year are presented in the schedule
Aqua Fresh Corporation is reviewing an investment proposal. The initial cost as well as other related data for each year are presented in the schedule below. All cash flows are assumed to take place at the end of the year. The salvage value of the investment at the end of each year is equal to its net book value, and there will be no salvage value at the end of the investment's life. Aqua Fresh uses a 24% after-tax target ROR for new investment proposals. The discount figures for a 24% ROR are given. The average annual cash inflow at which Aqua Fresh would be indifferent to the investment (rounded to the nearest dollar) is? The accounting ROR for the investment proposal over its life using the initial value of the investment is? The traditional payback period for the investment proposal is? The net present value of the investment is? Would you chose this investment and why
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