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Keller Company is considering a capital investment of $500,000 in new equipment. It is expected to have a useful life of 10 years with no

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Keller Company is considering a capital investment of $500,000 in new equipment. It is expected to have a useful life of 10 years with no salvage value. Depreciation is by the straight-line method During the life of the investment, annual net income and cash inflows are expected to be $35,000 and $85,000, respectively Keller requires either a 10% cost of capital "hurdle" rate, or a payback period of 7 years. State whether the project should be accepted or rejected for each of the four capital budgeting techniques. show all computations. Compute the annual rate of return. Compute the cash payback period. Compute the net present value. Compute the internal rate of return (to the nearest percent)

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