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INTEGRATION EXERCISE 7 Capital Budgeting, Return on Investment, Residual Income - Simmons Company - Question: Using a discount rate of 16%, calculate the present value

INTEGRATION EXERCISE 7 Capital Budgeting, Return on Investment, Residual Income - Simmons Company - Question: Using a discount rate of 16%, calculate the present value of your residual income for years 1 to 3. Is your answer greater than, less than, or equal to the net present value that you computed in (1) above $49,700? Why? Support your explanation with computations.

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