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Exercise 24-19 (Algo) Net present value; internal rate of return; equal cash flows LO P3, P4 Quary Company is considering an investment in machinery

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Exercise 24-19 (Algo) Net present value; internal rate of return; equal cash flows LO P3, P4 Quary Company is considering an investment in machinery with the following information. The company's required rate of return is 12% (PV of $1. FV of $1. PVA of $1, and EVA of $1) (Use appropriate factor(s) from the tables provided.) Initial investment Useful life Salvage value Expected sales per year $ 288,000 9 years Materials, labor, and overhead (except depreciation) Depreciation-Machinery $ 20,900 10,000 units Selling, general, and administrative expenses Selling price per unit a. Compute the investment's net present value. b. Using the answer from part a, is the investment's internal rate of return higher or lower than 12% ? $ 54,000 29,000 14,000. $ 14

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