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EXPLAIN HOW THIS WENT Somerville Corporation is considering investing in specialized equipment costing $659,000. The equipment has a useful life of 5 years and a
EXPLAIN HOW THIS WENT
Somerville Corporation is considering investing in specialized equipment costing $659,000. The equipment has a useful life of 5 years and a residual value of $57,000. Depreciation is calculated using the straight - line method. The expected net cash inflows from the investment are Year 1 Year 2 Year 3 Year 4 Year 5 $180,000 $210,000 $154,000 $81,000 $94,000 $719,000 Somerville Corporation's required rate of return is 16% The net present value of the investment is closest to OA. $132,508 positive B. $132,508 negative OC. $28,560 negative D. $60,000 positiveStep by Step Solution
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