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Generro Company is considering the purchase of equipment that would cost $60,000 and offer annual cash inflows of $16,300 over its useful life of 5
Generro Company is considering the purchase of equipment that would cost $60,000 and offer annual cash inflows of $16,300 over its useful life of 5 years. Assuming a desired rate of return of 10%, is the project acceptable? (PV of $1 and PVA of $1 ) (Use appropriate factor(s) from the tabies provided.) Mutiple Choice The answer cannot be detergined. No, since the negative net present value indicates the investmeet will yield a fate of return below the desired tate of return. Yes, since the investment will generate $81.500 in future cosh flows, which is greaer than the purchase cott of $60,000 Yes, since the positve net present valse indicates the investment will eam a rate of rotum greater than 10k
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