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Brady Corp. is considering the purchase of a piece of equipment that costs $20,000. Projected net annual cash flows over the project's life are: The

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Brady Corp. is considering the purchase of a piece of equipment that costs $20,000. Projected net annual cash flows over the project's life are: The cash payback period is A) 2.60 years. B) 2.31 years. C) 2.40 years. D) 2.29 years. Use the following table, A company has a minimum required rate of return of 9%. It is considering investing in a project which costs $350,000 and is expected to generate cash inflows of $140,000 at the end of each year for three years. The net present value of this project is A) $70,000 B) $35, 436. C) $4, 340. D) $354, 340. If a company's required rate of return is 10% and, in using the net present value method, a project's net present value is zero, this indicates that the A) project's rate of return exceeds 10%. B) project earns a rate of return of 10%. C) project cams a rate of return of 0%. D) project's rate of return is less than the minimum rate required. The primary capital budgeting method that uses discounted cash flow techniques is the A) cash payback technique. B) annual rate of return method. C) profitability index method. D) net present value method

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