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Palmer Corp. is considering the purchase of a new piece of equipment. The cost savings from the equipment would result in an annual increase in

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Palmer Corp. is considering the purchase of a new piece of equipment. The cost savings from the equipment would result in an annual increase in net income after tax of $141750. The equipment will have an initial cost of $525,000 and have a 7 year life. If the salvage value of the equipment is estimated to be $14,000, what is the accounting rate of return? Multiple Choice o 44119 O 149 37% 2700% 16 28% 49 Wilson Corp. is considering the purchase of a new piece of equipment. The cost savings from the equipment would result in an annual increase in net income after tax of $50,000. The equipment will have an initial cost of $600,000 and have an 8-year life. The salvage value of the equipment is estimated to be $100.000. If the hurdle rate is 10%, what is the approximate net present value? Future Value of $1. Present Value of $1, Future Value Annuity of S1, Present Value Annuity of $1. (Use appropriate factor from the PV tables. Round your final answer to the nearest dollar amount.) Multiple Choice Less than a $500.000 $46826 $100,000 50 You have a savings account that earns 5% interest compounded annually. A friend has offered you an investment opportunity, he says that if you Invest in his new business, he will pay you $10,000 a year for the next five years. What is the maximum amount you would be willing to invest in your friend's business? (Future Value of $1. Present Value of $1. Future Value Annuity of S1. Present Value Annuity of $1. (Use appropriate factor from the PV tables. Round your final answer to the nearest dollar amount.) Swoped Multiple Choice $47613 $43 295 $47500 $50.000 o

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