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Instructions: Find the Net Present Value for each Item below. Also, Indicate whether the potential Investment is acceptable or unacceptable. 3. Maddie Company has
Instructions: Find the Net Present Value for each Item below. Also, Indicate whether the potential Investment is acceptable or unacceptable. 3. Maddie Company has the following Information: 1. Cost of new asset: $400,000 1. Annual Net Income: $42,000 IN. Expected Life: 10 years Iv. Salvage value of the new asset: $20,000 v. Discount Rate (minimum required retum): 14% Present Value of Cash Outflow: Present Value of Cash Inflows: Net Present Value Results:
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