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The monagement of wyoming corporation is considening the purchase of a new machine costing $375,000. the companys desited rate of retum is 6%. The present

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The monagement of wyoming corporation is considening the purchase of a new machine costing $375,000. the companys desited rate of retum is 6%. The present value factor for an annuity of $1 ot 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 averoge rate of return for this investment is a. 105 b. 25N c. 15% d. 5%

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