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Starlight Ventures is considering an investment in new equipment which will cost $200,000 and is expected to last for 6 years. Starlight estimates that it
Starlight Ventures is considering an investment in new equipment which will cost $200,000 and is expected to last for 6 years. Starlight estimates that it will generate net operating cash flows from the equipment of $50,000 per year. Assuming that Starlight requires a 12% return on investment, should it undertake this investment? Show supporting computations in good form. For the Homework Quiz questions associated with the exercise, you will be instructed to format all answers as positive amounts with commas, rounded to the nearest whole number with no dollar sign in front. Calculate the net present value of the return on investment Show your work here \& round all answers to the nearest whole dollar. Round up for a .5 decimal: Question 1b: Based solely on your computations in question 1 , should the equipment be purchased? Yes or No
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