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George Company is considering the purchase of equipment that would cost $40,000 and offer annual cash lollows of $10,500 over its useful life of 5
George Company is considering the purchase of equipment that would cost $40,000 and offer annual cash lollows of $10,500 over its useful life of 5 years. Assuming a desired rate of return of 10%, is the project acceptable? Multiple Choice No, since the negative net procent value indicates the investment will yield a lot of return below the desired rate of return Yes since the positive et prente indicates the investment will com a rate of our lower man the desired rate of return Yes since the positive netresont vendicates the men wil om te of return in deficit of 10 The answer cannot be determined
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