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Question 6 (4 points) Bruno Corporation is involved in the business of injection molding of plastics. It is considering the purchase of a new computer-aided
Question 6 (4 points) Bruno Corporation is involved in the business of injection molding of plastics. It is considering the purchase of a new computer-aided design and manufacturing machine for $442,000. The company believes that with this new machine it will improve productivity and increase quality, resulting in an increase in net annual cash flows of $101,486 for the next 6 years. Management requires a 10% rate of return on all new investments. Hint: Calculate the discount factor for an internal rate of return of 10% on this new machine. a) Discount factor cannot be determined. Ob) Discount factor is 4.35528. Oc) Discount factor is 4.92158. d) Discount factor is 5.17859
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