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RL Enterprises wants to buy a machine that costs $375,000, has a 15-year life, and has no salvage value. Annual inflows are $212,000 and annual
RL Enterprises wants to buy a machine that costs $375,000, has a 15-year life, and has no salvage value. Annual inflows are $212,000 and annual outflows are $130,000. RL uses the straight-line method to compute depreciation and requires a rate of return of 20%. Based on this information, RL(SHOULD OR SHOULD NOT)pursue this project.
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