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The following information relates to three independent investment decisions by Buckle Enterprises, each with a 10-year life and no salvage value: Using the present value
The following information relates to three independent investment decisions by Buckle Enterprises, each with a 10-year life and no salvage value: |
Using the present value tables in Exhibits 26-3 and 26-4, compute the missing information pertaining to each investment proposal. (Round "PV factors" to 3 decimal places and your final answers to the nearest dollar amount. Omit the "$" & "%" signs in your response.) |
A | B | C | |||||||
Investment cost | $ | $ | 141,250 | $ | 75,152 | ||||
Incremental annual cash inflows | 16,000 | 37,000 | 19,000 | ||||||
Incremental annual cash outflows | 6,000 | 7,800 | |||||||
Discount rate yielding a net present value of zero | 10 | % | 12 | % | % | ||||
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