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Rack it Up Inc. produces cost racks. The projected sales from the first month of the coming year and the beginning and ending inventory Newborn
Rack it Up Inc. produces cost racks. The projected sales from the first month of the coming year and the beginning and ending inventory Newborn Hospital is considering the possibility of two new purchases, a new EKG/ECG machine or a new anesthesia machine. Each project would require an investment of $750,000. The expected life for each is five years with no expected salvage value. The net cash flows associated with the two independent projects are as follows. The required rate of return is 12 percent. The payback period for anesthesia machine is (A) 3.13 years (B) 4.25 years
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