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Quary Company is considering an investment in machinery with the following information. The company's required rate of return is 12%. (PV of $1. FV
Quary Company is considering an investment in machinery with the following information. The company's required rate of return is 12%. (PV of $1. FV of $1. PVA of $1, and EVA of $1) (Use appropriate factor(s) from the tables provided.) Initial investment $ 200,000 Useful life Materials, labor, and overhead (except depreciation) 9 years Depreciation-Machinery $ 45,000 20,000 Salvage value Expected sales per year $ 20,000 10,000 units Selling, general, and administrative expenses Selling price per unit 5,000 a. Compute the Investment's net present value. $ 10 b. Using the answer from part a, is the investment's internal rate of return higher or lower than 12%? Hint: It is not necessary to compute the IRR to answer this question. Complete this question by entering your answers in the tabs below. Required A Required B Compute the investment's net present value. (Round your present value factor to 4 decimals. Round your answers to the nearest whole dollar.) Present Value of Net Net Cash Flows Present Value Cash Flows Years 1-9 Year 9 salvage Totals => $ 0 Initial investment Net present value Required A Required B >
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