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Please provide the correct answer, I will upvote the correct answer. Thank you! A company is contemplating investing in a new piece of manufacturing machinery.
Please provide the correct answer, I will upvote the correct answer. Thank you!
A company is contemplating investing in a new piece of manufacturing machinery. The amount to be invested is $210,000. The present value of the future cash flows is $225,000. The company's desired rate of return used in the present value calculations was 12%. Which of the following statements is true? Oa. The internal rate of return on the project is more than 12%. Ob. The internal rate of return on the project is less than 12%. Oc. The internal rate of return on the project is equal to 12%. Od. The project should not be accepted because the net present value is negativeStep by Step Solution
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