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The following information applies to the questions displayed below. Falcon Crest Aces (FCA), Inc., is considering the purchase of a small plane to use in

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The following information applies to the questions displayed below. Falcon Crest Aces (FCA), Inc., is considering the purchase of a small plane to use in its wing-walking demonstrations and aerial tour business. Various information about the proposed investment follows: $ 250,000 Initial investment Useful life Salvage value Annual net income generated FCAs cost of capital 10 years 25,000 $ 5,600 8% Assume straight line depreciation method is used

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