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Cardinal Company is considering a project that would require a $2,810,000 investment in equipment with a useful life of five years. At the end of
Cardinal Company is considering a project that would require a $2,810,000 investment in equipment with a useful life of five years. At the end of five years, the project would terminate and the equipment would be sold for its salvage value of $500,000. The companys discount rate is 16%. The project would provide net operating income each year as follows:
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