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I would like a step by step on how to complete this question 6. Gemini is looking to make a $125,000 investment in a motor.
I would like a step by step on how to complete this question
6. Gemini is looking to make a $125,000 investment in a motor. The motor has a 5 year expected life and no terminal disposal value. Management believes the new motor will yield $35,000 in annual after-tax cash savings. Gemini's required rate of return is 10% and their tax rate is 30%. 1. Determine the net present value, payback period, discounted payback period, and internal rate of return for this investment. 2. Should Gemini make this investment? Why or why not
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