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Problem 5-3. Orange County, Inc. has a 6% cost of capital. The firm decides to invest in equipment that costs $250,000. Orange County, Inc. forecasts

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Problem 5-3. Orange County, Inc. has a 6% cost of capital. The firm decides to invest in equipment that costs $250,000. Orange County, Inc. forecasts that the project will generate $33,000 of annual cash inow in each of the next eleven years. Orange County, Inc. also presents the following present value of 1 table factors for a 6% interest rate for time periods 1-11: Table Factor .94340 1.83339 2.67301 3.46511 4.21236 4.91732 5.58238 6.209 79 6.80169 7.36009 7.88687 17

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