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Tucker Manufacturing is considering investing in specialized equipment costing $849,000. The equipment has a useful life of five years and a residual value of $72,000.
Tucker Manufacturing is considering investing in specialized equipment costing $849,000. The equipment has a useful life of five years and a residual value of $72,000. Depreciation is calculated using the straight-line method. The expected net cash inflows from the investment are given below: Year 1 2 3 4 5 Total $312,000 356,000 366,000 200,000 233,000 $1,467,000 What is the average amount invested? O A. $424,500 OB. $460,500 O C. $388,500 OD $ 733,500
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