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Question 22 (5 points) The management of Retz Corporation is considering the purchase of a new machine costing $500,000. The company desired rate of return

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Question 22 (5 points) The management of Retz Corporation is considering the purchase of a new machine costing $500,000. The company desired rate of return is 10%. The present value factors for $1 at compound interest of 10% for I through 5 years are 0.009.0.826, 0.751.0.683, and 0.621, respectively. In addition to the foregoing information, use the following data in determining the acceptability in this situation: Year Income from Operations Net Cash Flow $100,000 $200,000 80,000 170,000 50,000 130,000 10,000 80,000 10,000 80,000 The average rate of return for this investment is 1986 1692

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