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The following data are accumulated by Geddes Company in evaluating the purchase of $150,000 of equipment, having a fouryear useful life: Present Value of $1
The following data are accumulated by Geddes Company in evaluating the purchase of $150,000 of equipment, having a fouryear useful life: Present Value of $1 at Compound Interest a. Assuming that the desired rate of return is 15%, determine the net present value for the proposal. If required, round to the nearest dollar. Use the table of the present value of $1 presented above. b. Would management be likely to look with favor on the proposal? because the net present value indicates that the return on the proposal is than the minimum desired rate of return of 15%
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