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Nien Company accumulates the following data concerning a proposed capital investment: Cash cost S220,000; net annual cash flows $40,000: present value of annuity factor of

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Nien Company accumulates the following data concerning a proposed capital investment: Cash cost S220,000; net annual cash flows $40,000: present value of annuity factor of cash inflows for lO years @ 12% is 5.65 (rounded). Determine the net present value, and indicate whether the investment should be made. 40. Present Value Net annual cash flows Capital Investment Net Present Value

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