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please help Table 10-1. Capital Budgeting Choices Capital Cumulative Business Investment Investment Location Cost in $ Costs 1 25,000 25,000 2 28,500 53,500 3 32,500

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Table 10-1. Capital Budgeting Choices Capital Cumulative Business Investment Investment Location Cost in $ Costs 1 25,000 25,000 2 28,500 53,500 3 32,500 86,000 4 32,500 118,500 5 45,000 I 163,500 6 54,000 217,500 7 63,250 280,750 8 73,000 353,750 Net Present Value 27,500 35,000 35,000 38,000 (15,000) (10,000) 92,000 100,000 45) Refer to Table 10-1. Glen Write owns an engineering firm. He asked his employees for suggestions regarding equipment they thought the firm would need during the next year. They suggested the purchase of eight pieces of equipment. Glen calculated the net present value of each recommendation. Glen estimates that he will have no more than $150,000 to invest next year. Based on NPV, which of the following items should he purchase? A) 1.2.& 8 B) 1, 2, 3, & 4 C) 7 & 8 D) 2,3,&7

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