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If the NPV is greater than zero, the proposal should be accepted based on the presented situation, hence TRC Corporation should absolutely purchase this equipment.

If the NPV is greater than zero, the proposal should be accepted based on the presented situation, hence TRC Corporation should absolutely purchase this equipment. Because the present value of the expected earnings from the equipment exceeds its current cost, the nett present value of P1,257.24 indicates that it is profitable

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