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Chapter 25 introduced the concept of planning for capital investments. Two of the methods for evaluating a capital investment, use the concept of the Present

Chapter 25 introduced the concept of planning for capital investments. Two of the methods for evaluating a capital investment, use the concept of the Present Value of Future Cash Flows and the tables referenced in Appendix G. In your own words, please discuss what that concept means and why it is important to consider when purchasing a piece of equipment that will generate future cash flow for your business.

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