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managment acc Canada Company wants to invest in new equipment machine for its plant. The investment is expected to generate annual cash inflows of $60,000.
managment acc
Canada Company wants to invest in new equipment machine for its plant. The investment is expected to generate annual cash inflows of $60,000. The required rate of return is 10% and the current equipment is expected to last for four years. What is the maximum dollar amount the company would be willing to spend for the new equipment, assuming its life is also four years? income taxes are not considered. Select one: a. $190,140 b. $136,750 c. $177,975 d. $230,400 Step by Step Solution
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