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Kingbird Co. purchased some equipment 3 years ago. The company's required rate of return is 12%, and the net present value of the project was
Kingbird Co. purchased some equipment 3 years ago. The company's required rate of return is 12%, and the net present value of the project was $(11001. Annual cost savings were: $12000 for year 1: 10000 for year 2: and $9000 for year 3. The amount of the initial investment was Present Value Year of lat 12% 0.893 2 0.797 3 0.712 PV of an Annuity of 1 at 12% 0.893 1690 2.402 1 522920 $26194 525120 $23994
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