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Question 49 (1 point) Present Value of an Annuity of 1 Periods 8% 9% 10% 1 0.926 0.917 0.909 2 1.783 1.759 1.736 3 2.577

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Question 49 (1 point) Present Value of an Annuity of 1 Periods 8% 9% 10% 1 0.926 0.917 0.909 2 1.783 1.759 1.736 3 2.577 2.531 2.487 A company has a minimum required rate of return of 10% and is considering investing in a project that requires an investment of $68,000 and is expected to generate cash inflows of $30,000 at the end of each year for 3 years. The present value of future cash inflows for this project is $6,610. O $74,610. $68,000 $7,930. Question 50 (1 point) The major difference between the net present value method and the annual rate of return method in evaluating a capital project is the NPV method is easier for managers to justify than the ARR method. the NPV method focuses on the overall profitability of a project. the ARR method focuses on overall profitability of a project. the ARR method is easier for accountants to justify than the NPV method

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