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The management of Wyoming Corporation is considering the purchase of a new machine costing $375,000. The company's desired rate of return is 6%. The present
The management of Wyoming 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 of this investment: The average rate of return for this investment is a. 5% b. 15% c. 10% d. 25%
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