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CHAPTER 26 - Capital Investment Analysis The management of Huseman Corporation is considering the purchase of a new machine costing $400,000. The company's desired rate

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CHAPTER 26 - Capital Investment Analysis The management of Huseman Corporation is considering the purchase of a new machine costing $400,000. The company's desired rate of return is 10%. The present value factors for $1 at compound interest of 10% for 1 through 5 years are 0.909, 1.736, 2.487, 3.170 and 3.791 respectively. In addition to the foregoing information, use the following data in determining the acceptability in this situation: Income from Net Cash Operations Flow $100,000 $180,000 40,000 120,000 20,000 100,000 10,000 90,000 10,000 90,000 Yea N- w The cash payback period for this invest E

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