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The management of Arnold Corporation is considering the purchase of a new machine costing $200,000. The company's desired rate of return is 10%. The present
The management of Arnold Corporation is considering the purchase of a new machine costing $200,000. The company's desired rate of return is 10%. The present value factors tor $1 at compound interest of 10% for 1 through 5 years are 0.909, 0.826, 0.683, and 0.621, respectively. In addition to the information, use the following data in determining the acceptability, in this situation: The present value index for this investment is A. 88 B. 1-45 C. 70 D. 1.14
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