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The management of Douglass Corporation is considering the purchase of a new machine costing $375,000. The company's desired rate of return is 6%. The present

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The management of Douglass Corporation is considering the purchase of a new machine costing $375,000. The company's desired rate of return is 6%. The present value factor for an annuity of $1 at interest of 6% for 5 years is 4.212 . In addition to the foregoing information, use the following data in determining the acceptability in this situation: The average rate of return for this investment is: 5%15%25%10%

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