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Compute the net present value of each potential investment assume the company requires a 10% rate of return on its investments C ertomreau ACC 220

Compute the net present value of each potential investment assume the company requires a 10% rate of return on its investments image text in transcribed
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C ertomreau ACC 220 Managerial Accounting Principles: Summer 2017 ACCOUNTING ignment 8 Question 2 (of 3) 6.00 points Compute the net present value of each potential investment. Assmethe company requres a 10% rate of return on its investments. Evom PyoHAAow and PVA of $1) (Use appropriate factorfs) from the tables provided.) a. A new operating system for an existing machine is expected to cost $520,000 and have a useful lde of six years. The system yields an incremental after-tax income of $150,000 each year after deducting its straight-line deprociation. The predicted salvage value of the sysiem is $10,000. (Round your answer to the nearest whole dollar.) Amount PV Factor Present Value rnual cash fow Residual value Net present value Type here to search 5 6 0

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