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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
[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: Initial investment $ 310,000 Useful life Salvage value Annual net income generated FCA's cost of capital 10 years 25,000 $ 6,800 7% Assume straight line depreciation method is used
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