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Rennin Dairy Corporation is considering a plant expansion decision that has an estimated useful life of 20 years. This project has an internal rate of
Rennin Dairy Corporation is considering a plant expansion decision that has an estimated useful life of 20 years. This project has an internal rate of return of 15% and a payback period of 9.6 years. How would a decrease in the expected salvage value from this project in 20 years affect the following for this project?
Internal Rate of Return | Payback Period | |
---|---|---|
A) | Decrease | Decrease |
B) | No effect | Decrease |
C) | Decrease | No effect |
D) | Increase | No effect |
E) | No effect | No effect |
Multiple Choice
Choice A
Choice B
Choice C
Choice D
Choice E
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