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(Ignore income taxes in this problem.) Picado, Inc. is investigating an investment in equipment that would have a useful life of 8 years. The company
(Ignore income taxes in this problem.) Picado, Inc. is investigating an investment in equipment that would have a useful life of 8 years. The company uses a discount rate of 9% in its capital budgeting. The net present value of the investment, excluding the salvage value, is -$389,000. To the nearest whole dollar how large would the salvage value of the equipment have to be to make the investment in the equipment financially attractive? A. $774,900 B. $35,010 C. $389,000 D. $4,322,222
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