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n Heath is seeking part-time employment while he attends school. He is considering purchasing technical equipment that wll enable him to start a small training

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n Heath is seeking part-time employment while he attends school. He is considering purchasing technical equipment that wll enable him to start a small training services company that will offer tutorial services over the Internet. Aaron expects demand for the service to grow rapidly in the first two years of operation as customers learn about the availablity of the Internet assistance. Thereafter he expects demand to stabilize. The following table presents the expected cash flows: Cash Inflow Cash Out 2019 2020 2021 2022 $14,000 20,500 22,000 22,000 8,600 11,100 13,000 13,000 In addition to these cash flows, Aaron expects to pay $21,000 for the equipment. He also expects to pay $2,700 for a major overhaul and updating of the equipment at the end of the second year of operation. The equipment is expected to have a $1,900 salvage value and a four year useful life. Aaron desires to earn a rate of return of 8 percent. (PV of $1 and PVA of S) the tables provided.) (Use appropriate factor(s) from Required be indicated by a minus sign. Round intermediate calculations and final answer to 2 decimal places.) Indicate whether the investment opportunity is expected to earn a return that is above or below the desired rate of return and whether it should be accepted b. a. Net pr value Should the

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