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NPV and maximum return A firm can purchase new equipment for $28,000 that generates an annual cash inflow of $9,000 for 6 years. a. Determine
NPV and maximum return A firm can purchase new equipment for $28,000 that generates an annual cash inflow of $9,000 for 6 years. a. Determine the net present value (NPV) of the asset, assuming that the firm has a cost of capital of 9%. Is the project acceptable? b. Determine the maximum required rate of return that the firm can have and still accept the asset
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