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Smitty Corp, whose required rate of return is 18%, is considering the purchase of a new piece of equipment. The internal rate of return of
Smitty Corp, whose required rate of return is 18%, is considering the purchase of a new piece of equipment. The internal rate of return of the project, which has a life of 15 years, is 21%. The project would have |
an accounting rate of return equal to 18%. | |
a net present value greater than zero. | |
a payback period more than 15 years. | |
a net present value of zero. |
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