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The St . Louis to Seattle Railroad is considering acquiring equipment at a cost of $ 5 3 6 , 0 0 0 . The

The St. Louis to Seattle Railroad is considering acquiring equipment at a cost of $536,000. The equipment has an estimated life of 10 years and no residual value. It is expected to provide yearly net cash flows of $67,000. The company's minimum desired rate of return for net present value analysis is 10%.
Present Value of an Annuity of $1 at Compound Interest
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