The management of River Corporation is considering the purchase of a new machine costing $380,000. The...
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The management of River Corporation is considering the purchase of a new machine costing $380,000. 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 of this investment: Year Income from Net Cash Flow 12345 Operations $20,000 $95,000 20,000 95,000 20,000 95,000 20,000 95,000 20,000 95,000 The average rate of return for this investment is Oa. 10.5% xOb. 5% Oc. 15% Od. 25% Feedback Check My Work Incorrect The management of River Corporation is considering the purchase of a new machine costing $380,000. 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 of this investment: Year Income from Net Cash Flow 12345 Operations $20,000 $95,000 20,000 95,000 20,000 95,000 20,000 95,000 20,000 95,000 The average rate of return for this investment is Oa. 10.5% xOb. 5% Oc. 15% Od. 25% Feedback Check My Work Incorrect
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