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Santana Rey is considering the purchase of equipment for Business Solutions that would allow the company to add a new product to its computerfurniture line.

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Santana Rey is considering the purchase of equipment for Business Solutions that would allow the company to add a new product to its computerfurniture line. The equipment is expected to cost $393,840 and to have a socyear life and no salvage value. The equipment is expected to generate income of $16,039 and net cash flow of $75,130 in each year of its siox-year life. Santana requires an 5% return on all imvestments. (PV of S1. EV of S1, PVA of S1, and EVA of S1) (Use oppropriate foctor(s) from the robles provided.) (Negative net present volues should be indicoted with a minus sign. Do not round intermediate calculations. Round your present value factor to 4 decimals and final answers to the neorest whole number.) Required: 1-a. Compute the payback period for this equipment. 1-b. Compute the net present value for this. equipment 1-c. Compute internal rate of return for this equipenent. 2. If Santana requires investments to have payback periods of four years or less, should she imvest in this equipment? 3. If Santana requires investments to have at least an 5% inteinal rate of return, should she invest in this equipment? Complete this question by entering your answers in the tabs below. Compute the payback period for this equipment. Complete this question by entering your answers in the tabs below. Compute the net present value for this equipment. (Negative values must be entered as a negative number. Complete this question by entering your answers in the tabs below. Compute internal rate of retum for this equipment. Complete this question by entering your answers in the tabs below. 2. If Santana requires investments to have payback periods of four yoarg or less, should she invest in this equipment? 3. II Santana requires imvestments to have at least an 5 ih intemal rate of roturn, should she invest in this equipment? 2. If Santana requikos imvestmonta it have payback periods of four years or less, should she invost in this equipment? 2. II Sartana requirus imestments to have at least an 5% htemal rate of return should she irvest in this equipment

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