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Company XYZ is considering the following investment $300,000 3 Years $10,000 Estimated Capital Investment Estimated Useful Life Estimated Dispoal Value in 3 Years Estimated Annual

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Company XYZ is considering the following investment $300,000 3 Years $10,000 Estimated Capital Investment Estimated Useful Life Estimated Dispoal Value in 3 Years Estimated Annual Savings in Cash Operating costs Minimum Desired Rate of Return $130,000 12% Assume straight-line depreciation is used. Ignore income taxes. The Net Present Value of the Investment is: $22,234 $12,234 $100,000 $19,356

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