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Betty Burts Co. is considering a proposal to buy a brand new machine costing $550,000. The company's desired rate of return is 16%. Use the
Betty Burts Co. is considering a proposal to buy a brand new machine costing $550,000. The company's desired rate of return is 16%. Use the following data to determine the acceptability in this situation Year 1 Year 2 Year 3 Year 4 Year 5 Income from Operations 80,000 55,000 40,000 20,000 10,000 Net Cash Flow 180,000 140,000 120,000 80,000 60,000 Round year to 1 decimal and round percentage to 1 decimal The cash payback period for this investment years? The average rate of return for this investment %? Should management accept the proposal
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