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Home Express Moving Company is considering purchasing new equipment that costs $716,000. Its management estimates that the equipment will generate cash inflows as follows:
Home Express Moving Company is considering purchasing new equipment that costs $716,000. Its management estimates that the equipment will generate cash inflows as follows: Year 1 $216,000 2 216,000 3 260,000 4 260,000 5 154,000 Present value of $1: 6% 7% 8% 9% 10% 1 0.943 0.935 0.926 0.917 0.909 2 0.890 0.873 0.857 0.842 0.826 3 0.840 0.816 0.794 0.772 0.751 A. $890,000 B. $839,254 C. $864,844 D. $892,000
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