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Assume the following information for a capital budgeting proposal with a five-year time horizon: 07 $510,000 Initial investment: Cost of equipment (zero salvage value) Annual

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Assume the following information for a capital budgeting proposal with a five-year time horizon: 07 $510,000 Initial investment: Cost of equipment (zero salvage value) Annual revenues and costs: Sales revenues Variable expenses Depreciation expense Fixed out-of-pocket costs $300,000 $130,000 $ 50,000 $ 40,000 Click here to view Exhibit 148.1 and Exhibit 140-2, to determine the appropriate discount factor(s) using the tables provided If the company's discount rate is 12%, then the net present value for this investment is closest to Click here to view Exhibit 14B-1 and Exhibit 14 5 If the company's discount rate is 12%, then th Multiple Choice O $221,600. O $(121600) O $(221,600). O $41.350) 6 Assume that a company is considering purchasing a machine for $50,000 that will have a five-year useful life and a $5,000 salvage value. The machine will lower operating costs by $17,000 per year and its depreciation expense will be $9,000 per year. The company's required rate of return is 18%. What is the net present value of this investment? Click here to view Exhibit 148.1 and Exhibit 148:2. to determine the appropriate discount factors) using the tables provided Multiple Choice $3,159 $122.799) $(3.359) $5,344 Assume the following information for a capital budgeting proposal with a five-year time horizon: 8 $580,000 Initial investment: Cost of equipment (zero salvage value) Annual revenues and costs: Sales revenues Variable expenses Depreciation expense Fixed out-of-pocket costs $300,000 $130,000 $ 50,000 $ 40,000 Click here to view Exhibit 14B-1 and Exhibit 148-2, to determine the appropriate discount factor(s) using the tables provided This proposal's internal rate return is closest to Click here to view Exhibit 14B-1 and Exhibit 1. This proposal's internal rate of return is close 8 Multiple Choice 3%. 8%. 1%. 6%

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