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Rent-to-Own Equipment Co. is considering a new inventory system that will cost $460,000. The system is expected to generate positive cash flows over the next
Rent-to-Own Equipment Co. is considering a new inventory system that will cost $460,000. The system is expected to generate positive cash flows over the next four years in the amounts of $250,000 in year one, $125,000 in year two, $110,000 in year three, and $70,000 in year four. Rent-to-Own's required rate of return is 12%. What is the net present value of this project? a. $-11,780 b. $-14,354 c. $-15,328 d. $-17,864
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