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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
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: The net present value for this investment is a. $(20,140) b. $(19,875) c. $19,875 d. $20,140
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