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George Company is considering the purchase of equipment that would cost $40,000 and offer annual cash inflows 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 inflows of $10,500 over its useful life of 5 years. Assuming a desired rate of return of 10%, is the project acceptable? 20 Multiple Choice No, since the negative net present value indicates the investment will yield a rate of return below the desired rate of return Yes, tince the positive net present value indicates the investment will com a rate of return lower than the desired rate of return Yes, since the positive net present volo indicates the investment will earn rate of return in deficit or to The answer cannot be determined
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