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Business Accounting questions. Thank you for your help! 51) Apnea Video Ren tal Store is considering the purchase of an almost new minivan to use

Business Accounting questions. Thank you for your help! image text in transcribed
51) Apnea Video Ren tal Store is considering the purchase of an almost new minivan to use as a vehicle for customers. The minivan will cost $18,000 and is expected to to deliver and pick up video tapes last 8 years but only if the engine is overhauled at a cost of $3,000 at the end of year 3. The minivan is expected to have a $1,000 salvage value at the end of 8 years. This delivery service is expected to generate the net cash inflows of $6,000 per year in each of the 8 years. Apnea's discount rate is 14%. What is the net present value of this investment opportunity? A) ($2,826) B) ($3,801) C) $7,185 D) $8,160 52) The Gonzalez Company has decided to buy a machine costing $16,000. Estimated cash savings from using the new machine amount to $4,120 per year. The machine will have no salvage value at the end of its useful life of six years. If the required rate of return for Gonzalez Company is 12%, the machine's internal rate of retum is closest to: A) 12% B) 1496 c) 16% D) 1896

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