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Baber Corporation is planning an investment with the following characteristics: (Ignore income taxes in this problem.) Useful life 8 years Yearly net cash inflow $50,000
Baber Corporation is planning an investment with the following characteristics: (Ignore income taxes in this problem.) |
Useful life | 8 years |
Yearly net cash inflow | $50,000 |
Salvage value | $0 |
Internal rate of return | 15% |
Required rate of return | 11% |
Click here to view Exhibit 13B-2 to determine the appropriate discount factor(s) using tables. |
The initial cost of the equipment is closest to: (Round discount factor(s) to 3 decimal places) |
Cannot be determined from the given information.
$350,100
$224,350
$234,700
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