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These are the correct answers but do not know the steps 6) -152,000 7) -4,962 8) 130,685 9) 65,700 10) 39,423 11) 17.21 Investment Option
These are the correct answers but do not know the steps
6) -152,000
7) -4,962
8) 130,685
9) 65,700
10) 39,423
11) 17.21
Investment Option "South" This potential investment is less risky and shorter term, so it has a minimum rate of return of 8.90%. This investment would require an initial outlay of cash of $152,000, and at the end of the 5-year life of this investment UGE Corporation is expected to have to pay a wind-down cost of $7,600. For the first 4 years of this investment, net annual cash inflows are expected to be $40,250 and for the last year of the investment, the net annual cash inflow is expected to be $100,625Step by Step Solution
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