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Reeder Company, which uses net present value to analyze investments, requires a 10% minimum rate of return. At this cost of capital, the staff assistant
Reeder Company, which uses net present value to analyze investments, requires a 10% minimum rate of return. At this cost of capital, the staff assistant calculated a $500,000 machine's cost to have a net present value of $86,400. A cost of capital rate which would decrease this net present value would be: A: 11%, B: 6%, C:9%, D: 2%, E: 8%
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