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Smitty Corp, whose required rate of return is 20%, is considering the purchase of a new piece of equipment. The internal rate of return of
Smitty Corp, whose required rate of return is 20%, is considering the purchase of a new piece of equipment. The internal rate of return of the project, which has a life of 17 years, is 22%. The project would have
an accounting rate of return equal to 20%. | |
a payback period more than 17 years. | |
a net present value greater than zero. | |
a net present value of zero. |
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