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The United Printing Company, Inc. is considering buying a new web press. It will cost a total of $ 7 M to completely install the
The United Printing Company, Inc. is considering buying a new web press. It will cost a total of $ M to completely install the machine. The first year they had a net cash flow of $ M The next year the net was $ M Because of industry problems, they had to add more equipment in each of the next two year at a net cost and again had positive cash flow for years and Here is a chart of the cash flows.Question Statement:
The United Printing Company, Inc. is considering buying a new web press. It will cost a total of $ to completely install the machine.
The first year they had a net cash flow of $ The next year the net was $ Because of industry problems, they had to add more
equipment in each of the next two year at a net cost and again had positive cash flow for years and Here is a chart of the cash
flows.
How many possible rates of return could this data have?
Estimate the possible rates of return between and using a chart in a spreadsheet such as Excel.
a Number of possible rates of return: none
b Number of possible rates of return: Possible RORs: and
c Number of possible rates of return: Possible RORs:
d Number of possible rates of return: Possible RORs: and
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