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Freedom Company is considering the purchase of a machine that would cost $18,216 and would have a useful life of 4 years. The machine would

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Freedom Company is considering the purchase of a machine that would cost $18,216 and would have a useful life of 4 years. The machine would generate 55,500 af net annual cash inflows per year for each of the 4 years of its life. The internal rate of return on the machine would be closest to Present Value of 51 Periods 8% 10% 12% 14% 4 0.735 0.683 0.636 0.592 5 0.681 0 621 0.567 0.519 6 0.630 0.564 0.507 0.456 7 0583 0.513 0.452 0.400 B 0540 0.467 0.404 0.351 9 0.500 0.424 0.361 0.308 10 0.463 0.386 0.322 0.270 Present Value of Annuity of S1 Periods 8% 4 3.312 5 3.993 6 4.623 7 5.206 8 5.747 9 6.247 10 6.710 Co 10% 3.170 3.791 4.355 4.868 5.335 5.759 6.145 12% 3.037 3.605 4.111 4.564 4.968 5328 5650 14% 2.914 3.433 3.889 4.288 4.639 4.946 5216 O A. 6% O B. 8% O C. 4% OD. 10%

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