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Terra networks is planning to buy injection molding machinery costing 180,000. This machinery's expected useful life 5 years. They require a minimum rate of return
Terra networks is planning to buy injection molding machinery costing 180,000. This machinery's expected useful life 5 years. They require a minimum rate of return of 8%, and have calculated the following data pertaining to the purchase and operation of this machinery Year Estimated Annual Cash inflows Estimated Annual Cash Outflows Depreciation 1 $40,000 8,000 28,000 2 50,000 18,000 28,000 3 75,000 22,000 28,000 4 105,000 35,000 28,000 5 110,000 50,000 28,000
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