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Ayayai's Lawn Service needs to purchase a new lawnmower costing $7,756 to replace an old lawnmower that cannot be repaired. The new lawnmower is expected
Ayayai's Lawn Service needs to purchase a new lawnmower costing $7,756 to replace an old lawnmower that cannot be repaired. The new lawnmower is expected to have a useful life of 4 years, with no salvage value at the end of that period. Click here to view the factor table. (a) If Ayayai's required rate of return is 10%. what level of annual cash savings must the lawnmower generate to be considered an acceptable investment under the net present value method? {For calculation purposes, use4decimai places as displayed in the factor table provided and round nal answer to 0 decimal place. eg. 58, 971.) Annual cash savings should be $ ' (b) If Ayayai's required rate of return is 14%, what level of annual cash savings must the lawnmower generate to be considered an acceptable investment under the net present value method? (Forcalcuiation purposes, use 4 decimal placesasdisplayed in the factor table provided and round nal answer to 0 decimal place, eg. 58,971.) Annual cash savings should be $
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