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Question 4 3 pts Paws Corporation is considering the purchase of a machine costing $16,000. Estimated cash savings from using the new machine are $4,120
Question 4 3 pts Paws Corporation is considering the purchase of a machine costing $16,000. Estimated cash savings from using the new machine are $4,120 per year. The machine will have no salvage value at the end of its useful life of six years and the minimum required rate of return for Paws Corporation is 12%. The machine's internal rate of return is closes to: Refer to Exhibit 12B-1 (Present value of $1 table) and Exhibit 12B-2 (Present value of an annuity table) to determine the appropriate discount factor(s). 14% 12% 16% 18%
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