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Use this information for Nebraska Corporation to answer the question that follow. The management of Nebraska Corporation is considering the purchase of a new machine

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Use this information for Nebraska Corporation to answer the question that follow. The management of Nebraska Corporation is considering the purchase of a new machine costing $490,000. The company's desired rate of return is 10%. The present value factors for $1 at compound interest of 10% for Years 1 through 5 are 0.909, 0.826, 0.751, 0.683, and 0.621, respectively. In addition to the foregoing information, use the following data in determining the acceptability: Net Cash Flow Year 1 2 Income from Operations $100,000 40,000 40,000 10,000 10,000 3 $180,000 120,000 100,000 90,000 120,000 4 5 The average rate of return for this investment is Oa. 18% Ob. 58% Oc. 10% Od. 16%

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