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CarCare Garage Company is considering an investment in a new tune-up computer. The cost of the computer is $24,000. A cost analyst has cakkulated the
CarCare Garage Company is considering an investment in a new tune-up computer. The cost of the computer is $24,000. A cost analyst has cakkulated the discounted present value of the expected cash flows from the computer to be $28,220, based on the firm's cost of capital of 20%. Required a. what is the expected return on investment of the machine, relative to 20%? b. The payback period of the investment in the machine is expected to be 4.6 years. How much weight should this measurement carry in the decision about whether or not to invest in the machine
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