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Oriental Corporation has gathered the following data on a proposed investment project: Investment in depreciable equipment $ 200,000 Annual net cash flows $ 50,000 Life
Oriental Corporation has gathered the following data on a proposed investment project: Investment in depreciable equipment $ 200,000 Annual net cash flows $ 50,000 Life of the equipment 10years Salvage value 0 Discount rate 10% Use Exhibit 7B-1 and Exhibit 7B-2, to determine the appropriate discount factor(s) using the tables provided. The company uses straight-line depreciation on all equipment. Assume cash flows occur uniformly throughout a year except for the initial investment The net present value of this investment would be: Select one: a. $200,000 b. $(14,350) c. $107,250 d. $77,200
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