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Sunny Days Corporation is deciding whether to automate one phase of its production process. The equipment has a six -year life and will cost $390,000.
Sunny Days Corporation is deciding whether to automate one phase of its production process. The equipment has a six -year life and will cost $390,000. Projected net cash inflows from the equipment are as follows Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 $80,000 $120,000 $140,000 $130,000 $64,000 $83,000 Sunny Days Corporation's hurdle rate is 12%. Assume the residual value is zero What is the net present value of the equipment OA. $4,537 B. $42,346 OC. $37,809 O D. $(37,809)
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