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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

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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 annulty 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 acceptabisty of this investment: The average rate of retum for this investment is 25% b. 5 c. 15% a. 10ss

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