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The executives of Rocco Manufacturing has three different proposals under consideration. The Accounting Department has prepared the following information: B $ 2,450,000 $ 2,055,000 $
The executives of Rocco Manufacturing has three different proposals under consideration. The Accounting Department has prepared the following information: B $ 2,450,000 $ 2,055,000 $ 3,100,000 Initial investment 7 Years 7 Years 7 Years Useful life of equipment $ $ $ 0 400,000 100,000 Estimated salvage value 5.2 Years Payback period 4 Years 4.4 Years Net present value discount at 15% $ (30,000) $ 21,600 $ 15,800 Which of the above proposals generates the greatest annual cash flow? O Proposal A O Proposal B O Proposal C Cannot be determined with the given information
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